US Treasury report clears Japan of FX manipulation, but says will monitor them

This from the US Treasury twice yearly currency manipulation report

• Found that no major us trading partner manipulated currency to gain
  unfair trade advantage in four quarters through December 2023
• Found no major
  trading partner met criteria for enhanced analysis in four quarters
  ending December 2023
• Monitoring list of
  trading partners whose currency practices ‘merit close attention’
  includes China, Japan, Malaysia, Singapore, Taiwan, Vietnam, and
  Germany
• Foreign exchange
  report reiterates call for increased currency transparency from China
• China’s failure to
  publish forex intervention and lack of exchange rate policy
  transparency make China an ‘outlier,’ warrant close monitoring
• Biden administration
  strongly opposes attempts by trading partners to manipulate currency
  values to gain unfair advantage over US workers
• Japan intervened in
  currency market in April and May 2024 to buy yen, sell dollars,
  strengthening yen’s value
• Japan is transparent
  on foreign exchange interventions
• Expects intervention
  in large markets to be reserved for very exceptional circumstances
  with appropriate prior consultations
• China has used daily
  yuan fix rate over the past year to prevent weakening of yuan,
  without official explanation
• Japan, Taiwan,
  Vietnam, Germany on monitoring list due to significant bilateral us
  trade surplus and material global current account surplus
• Japan’s recent
  currency market interventions were not a factor in adding japan to
  forex report monitoring list
• Forex report raises
  questions on the accuracy of Chinese data on current account balance

more to come

This article was written by Eamonn Sheridan at www.forexlive.com.