US Treasury Warns Japan On Exchange Rate Policy

(P) when the new Japanese government sought to revive economic growth through the radical "a href=" http://sjfzxm.com/news/index_q.asp "monetary policy" < /a >, Obama (Obama) government used new and specific statements to warn Japan not to lower the yen exchange rate in order to gain global market competitive advantage.

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In the semi annual report on global exchange rate released on Friday, P also criticized China's massive intervention in the market to lower the RMB exchange rate, calling it disturbing.

But the Treasury did not classify China as a currency manipulator, thereby avoiding disputes that could damage relations between the two largest economies in the US and the US.

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The Japanese Embassy in the United States declined to comment, and the Chinese Embassy in the United States did not respond to requests for comment at the first time. P

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< p > in the current global economic growth is weak, governments are facing the pressure to lower the local currency < a href= "http://sjfzxm.com/news/index_c.asp" > exchange rate < /a > to promote domestic exports pressure.

As the United States, Japan and the European Central Bank seek to boost their economies through the policy of increasing the supply of money, which will cause currency depreciation, the pressure is further increased.

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P said the United States will closely monitor Japan's economic policies to ensure that these policies aim at promoting economic growth rather than lowering the yen exchange rate.

Driven by monetary easing and fiscal spending policies launched by Japanese Prime Minister Abe Shinzo to fight deflation, the yen has dropped sharply in recent years, and the yen has fallen to its lowest level in the four year to nearly 100 yen against the US dollar.

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< p > > a href= "http://sjfzxm.com/news/index_p.asp" > the US Treasury Department /a > said in the report that Japan will continue to pressure Japan to avoid competitive devaluation and to link the exchange rate target with the competitive advantage.

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After the report was released, the yen rose rapidly in the light trading on Friday, and the dollar fell to the lowest level in the week of 1 dollars to 98.08 yen in P.

Later, as investors regarded the above comments as confirmation of the facts rather than criticism, the yen then retraced some gains.

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Alan Ruskin, a foreign exchange strategist at Deutsche Bank in New York, said the relevant wording indicates that the US Treasury will pay close attention to Japan to ensure that Japan fulfills its promise that it will not lower the yen's exchange rate, P Ruskin.

But he added that the report itself did not allude to Japan's violation of its commitments.

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The report of the US Treasury, which has attracted much attention, also highlights the need to further improve exchange rate flexibility in many Asian countries, especially China, P.

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(P) the US Treasury report used stricter wording than usual in talking about China's exchange rate policy, saying that China's recent re start of large-scale intervention in the exchange rate is disturbing.

However, the report added that since June 2010, the Chinese government has allowed the renminbi to rise by 10% against the US dollar, and the inflation rate has risen to 16%.

The report said that the value of the Renminbi remained "significantly undervalued", indicating that the renminbi still has reasons for further appreciation.

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