Yen rate unlikely to spur Japan-US currency friction, says ex-BOJ official

Tokyo

THE yen-dollar exchange rate is unlikely to become a source of serious friction between the US and Japan unless the yen weakens significantly below its current level, a former senior Bank of Japan (BOJ) official said on Thursday.

This assurance by former BOJ Policy Board member and prominent economist Sayuri Shirai came as Minister of Finance Taro Aso spoke by phone on Thursday with newly sworn-in US Treasury Secretary Steven Mnuchin while reportedly avoiding any mention of currency issues.

Tokyo authorities have been on edge since US President Donald Trump suggested earlier that Japan, along with China and Germany, had been engaging in currency manipulation to gain trade advantage. Fears of US reprisals have adversely impacted business sentiment, analysts say…