Currency Clash: Trump's Push for a Stronger Yen

U.S. President Donald Trump's push for a stronger yen against the dollar is central to trade talks with Japan, despite risks. Trump's accusations of Japan devaluing yen for trade advantages, and potential negotiations to shift exchange rates, could impact both countries' economies and financial policies.

U.S. President Donald Trump's desire for a stronger yen is poised to be a focal point in ongoing trade negotiations with Japan, despite the inherent risks involved. Analysts suggest that attempts to alter currency values could have significant economic repercussions for both countries.

Japan's economy minister, Ryosei Akazawa, began discussions in Washington by meeting with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson. Trump's surprise appearance added weight to the discussions, although the yen did not surface in initial talks. It's expected that Finance Minister Katsunobu Kato will address currency issues in upcoming meetings with Bessent.

Speculations of a 'Mar-a-Lago Accord' suggest a coordinated devaluation of the dollar, drawing parallels to past agreements like the Plaza Accord. However, experts like Citigroup's Osamu Takashima downplay immediate risks. Trump's tariffs on Japanese cars, essential for Japan's economy, and evolving currency scenarios underline the complexity of these negotiations.

(With inputs from agencies.)