TOKYO – Japan’s Finance Minister Taro Aso said on Friday that countries should not intervene in currency markets as agreed by the G20 after United States President Donald Trump’s comments on defending a “strong” dollar.
Aso was reacting to recent comments by Trump and US Treasury Secretary Steve Mnuchin on the strength of the dollar which caused strong fluctuations in the exchange rate of the dollar.
“The G7 and G20 have agreed to not target currency levels for the sake of international competitiveness such as trade. So we need to respond appropriately,” Aso said, Kyodo news agency reported.
Trump, during an interview with the US network CNBC Thursday, expressed support for a strong dollar. Mnuchin said Wednesday that a weak currency was favorable to US foreign trade.
The dollar depreciated Wednesday to 108.50 yen, its lowest level in four and a half months, following Mnuchin’s statement, although Trump’s statement led to a rebound up to the high end of 109 yen.
The dollar was quoted Friday at the lower end of 109 yen in Tokyo.