Amid rising concerns about the U.S. trade deficit, former top Japanese currency diplomat Masatsugu Asakawa suggested that Japan won’t experience pressure from the Trump administration to strengthen the yen. This comes despite Trump’s critique of Japan’s substantial trade surplus with the United States.
Asakawa, citing Trump’s recent tariff announcements, noted the stability of the dollar as a global reserve currency but acknowledged its vulnerability to selling pressure. He believes that recent communications between U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato did not involve discussions on currency matters, indicating a lack of coordinated effort akin to the 1985 Plaza Accord.
In addressing the downward trend of the dollar against the yen, Asakawa highlighted the challenges Japan faces in U.S. trade negotiations but underscored its strategic options like investing in the U.S. and advancing LNG projects. He stressed delivering these initiatives as a consolidated effort in negotiations.