U.S. Treasury Asks BOJ to Continue Monetary Squeeze

   Washington, June 5 (Jiji Press)--The U.S. Treasury Department on Thursday asked the Bank of Japan to continue its monetary tightening to correct the yen's depreciation against the dollar, which benefits Japan's exports to the United States.
   In its semiannual report released on the day on macroeconomic and foreign exchange policies of major trading partners of the United States, the department said, "Japan is transparent with respect to foreign exchange operations." It also said, however, "BOJ policy tightening should continue to proceed in response to domestic economic fundamentals including growth and inflation."
   It requested that the BOJ make monetary policy adjustments for "a normalization of the yen's weakness against the dollar and a much-needed structural rebalancing of bilateral trade."
   Meanwhile, the report placed nine countries and regions on the "Monitoring List" of major trading partners whose currency practices and macroeconomic policies merit close attention, including Japan and China, which have huge trade and current account surpluses with the United States. Ireland and Switzerland were newly added to the list.
   The report analyzed economic and foreign exchange policies of the United States' major trading partners over a year through December 2024. A Treasury Department official said that the department will continue to monitor the situation closely, noting that it is watching whether countries will launch currency market interventions to weaken their currencies as the dollar has fallen somewhat since the beginning of this year.

(2025/06/06-13:03)

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