US Treasury Concerned About Yen's Sharp Weakening

The U.S. Treasury Department has expressed concern about the sharp weakening of the yen, stating that excessive volatility in its exchange rate is undesirable.

In a semi-annual report on macroeconomic and exchange rate policies of major trading partners released on July 23, the department said that while the Bank of Japan (BOJ) is gradually raising its benchmark interest rate, the yen remains at its lowest level in decades against the dollar and in real effective exchange rates.

The U.S. Treasury Department noted that global factors such as financial market volatility and international oil prices may have affected the yen's value, but excessive exchange rate volatility is not desirable.