US Treasury Labels Excessive Yen Volatility Undesirable

The U.S. Treasury Department has expressed its disapproval of excessive yen volatility, calling it 'undesirable' in a semiannual report released on Thursday.

The report, which focuses on macroeconomic and foreign exchange policies of major trading partners of the United States, mentioned that global factors such as financial market volatility and oil prices have likely affected the yen's value.

The Treasury Department placed 10 economies, including Japan, China, and South Korea, which all run trade surpluses with the United States, on its foreign exchange policy monitoring list. The department noted that from the end of 2024 to the end of April 2025, the yen appreciated by nearly 10% against the dollar before softening and ending the year nearly flat.

A Treasury official clarified that the term 'undesirable' was used to convey a consistent message from the U.S. side over the past year.