Market News
Why the yen is the wrong gambit in any US-Japan trade dispute - REUTERS
Summary
- Trump's currency demands could threaten Japan's economic recovery, central bank independence
- Intervening to strengthen yen would require hefty selling of Treasuries
- Talking down the dollar is a dangerous strategy with market sentiment fragile
TOKYO, April 17 (Reuters) - U.S. President Donald Trump's desire for a stronger yen against the dollar is almost certain to figure into trade negotiations with Japan underway in Washington, but analysts say any effort to shift the currencies is fraught with risks for both sides.
Japan's chief negotiator, economy minister Ryosei Akazawa, got talks started on Wednesday by meeting with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson, with Trump also making a surprise appearance.
