Latest news with #tradeSurplus
Japan Times
10-07-2025
- Business
- Japan Times
Japan unlikely to face U.S. pressure to strengthen yen, ex-top FX diplomat says
Japan is unlikely to face pressure from the United States to intentionally strengthen the yen despite U.S. President Donald Trump's criticism of its large trade surplus with his country, former top currency diplomat Masatsugu Asakawa said. Trump's focus on addressing the U.S. trade deficit and his remarks about Japan maintaining a weak yen have fueled speculation about potential pressure on Tokyo to adjust the yen's value against the dollar and give U.S. manufacturers a competitive advantage. Asakawa said the dollar's status as a global reserve currency remains solid; however, it has become more susceptible to selling pressure following Trump's April 2 announcement of sweeping "reciprocal" tariffs.
Reuters
10-07-2025
- Business
- Reuters
Japan unlikely to face US pressure to strengthen yen, ex-top FX diplomat says
TOKYO, July 10 (Reuters) - Japan is unlikely to face pressure from the United States to intentionally strengthen the yen despite President Donald Trump's criticism of its large trade surplus with the U.S., former top currency diplomat Masatsugu Asakawa told Reuters. Trump's focus on addressing the U.S. trade deficit and his remarks about Japan maintaining a weak yen have fuelled speculation about potential pressure on Tokyo to adjust the yen's value against the dollar and give U.S. manufacturers a competitive advantage. Asakawa said the dollar's status as a global reserve currency remains solid; however, it has become more susceptible to selling pressure following Trump's April 2 announcement of sweeping "reciprocal" tariffs. "If the dollar weakens, that accelerates U.S. inflation, a risk (U.S. Treasury Secretary Scott) Bessent is probably well aware of," he said in an interview late on Wednesday. "My understanding is that there is no specific discussion on currency matters between Bessent and (Japanese Finance Minister Katsunobu) Kato in the context of trade talks," Asakawa said. Asked about the likelihood of a coordinated dollar depreciation akin to the 1985 Plaza Accord in which Washington led the G7 advanced nations to weaken the U.S. currency, he dismissed the possibility. "A second Plaza Accord is unlikely," he said, citing the need for agreement from China and Europe. Asakawa retains close contact with incumbent policymakers. As vice finance minister for international affairs from 2015 to 2019, Asakawa was deeply involved in Japan's trade and currency negotiations with the U.S. during Trump's first term as president from 2017. During Trump's first term as president, then Japanese Prime Minister Shinzo Abe successfully persuaded the U.S. president to leave exchange-rate matters in the hands of their finance chiefs, Asakawa said. "Since then, the notion that currency matters should be left to the finance leaders appears embedded within the U.S. administration," he said. In their first face-to-face talks in April, Kato said he agreed with Bessent to continue "constructive" dialogue on currency policy, but did not discuss setting currency targets or a framework to control yen moves. The dollar index , which reflects its performance against a basket of six other currencies, has had its worst first half of the year since 1973, declining some 11%. So far this year, the dollar has fallen 7.5% against the yen . Asakawa said the outcome of bilateral trade negotiations was hard to predict, with Trump showing little sign of heeding Tokyo's efforts to gain concessions on automobile tariffs. Trump ramped up his trade war on Monday, telling 14 nations that they now face sharply higher tariffs from a new deadline of August 1. Japan would see tariffs go up to 25% from 10%, unless it can negotiate a deal with Washington. Japan has several cards it can use in trade talks with Washington such as pledging to boost investment in the U.S., reviewing domestic car safety standards and contributing to liquefied natural gas (LNG) projects in Alaska, Asakawa said. "Instead of presenting them incrementally, it's better to deliver them as a single package," he said. After heading the Asian Development Bank until February, Asakawa is currently president of the Tokyo-based Institute for International Monetary Affairs.
Yahoo
10-07-2025
- Business
- Yahoo
Japan unlikely to face US pressure to strengthen yen, ex-top FX diplomat says
By Leika Kihara and Takaya Yamaguchi TOKYO (Reuters) -Japan is unlikely to face pressure from the United States to intentionally strengthen the yen despite President Donald Trump's criticism of its large trade surplus with the U.S., former top currency diplomat Masatsugu Asakawa told Reuters. Trump's focus on addressing the U.S. trade deficit and his remarks about Japan maintaining a weak yen have fuelled speculation about potential pressure on Tokyo to adjust the yen's value against the dollar and give U.S. manufacturers a competitive advantage. Asakawa said the dollar's status as a global reserve currency remains solid; however, it has become more susceptible to selling pressure following Trump's April 2 announcement of sweeping "reciprocal" tariffs. "If the dollar weakens, that accelerates U.S. inflation, a risk (U.S. Treasury Secretary Scott) Bessent is probably well aware of," he said in an interview late on Wednesday. "My understanding is that there is no specific discussion on currency matters between Bessent and (Japanese Finance Minister Katsunobu) Kato in the context of trade talks," Asakawa said. Asked about the likelihood of a coordinated dollar depreciation akin to the 1985 Plaza Accord in which Washington led the G7 advanced nations to weaken the U.S. currency, he dismissed the possibility. "A second Plaza Accord is unlikely," he said, citing the need for agreement from China and Europe. Asakawa retains close contact with incumbent policymakers. As vice finance minister for international affairs from 2015 to 2019, Asakawa was deeply involved in Japan's trade and currency negotiations with the U.S. during Trump's first term as president from 2017. During Trump's first term as president, then Japanese Prime Minister Shinzo Abe successfully persuaded the U.S. president to leave exchange-rate matters in the hands of their finance chiefs, Asakawa said. "Since then, the notion that currency matters should be left to the finance leaders appears embedded within the U.S. administration," he said. In their first face-to-face talks in April, Kato said he agreed with Bessent to continue "constructive" dialogue on currency policy, but did not discuss setting currency targets or a framework to control yen moves. The dollar index, which reflects its performance against a basket of six other currencies, has had its worst first half of the year since 1973, declining some 11%. So far this year, the dollar has fallen 7.5% against the yen. Asakawa said the outcome of bilateral trade negotiations was hard to predict, with Trump showing little sign of heeding Tokyo's efforts to gain concessions on automobile tariffs. Trump ramped up his trade war on Monday, telling 14 nations that they now face sharply higher tariffs from a new deadline of August 1. Japan would see tariffs go up to 25% from 10%, unless it can negotiate a deal with Washington. Japan has several cards it can use in trade talks with Washington such as pledging to boost investment in the U.S., reviewing domestic car safety standards and contributing to liquefied natural gas (LNG) projects in Alaska, Asakawa said. "Instead of presenting them incrementally, it's better to deliver them as a single package," he said. After heading the Asian Development Bank until February, Asakawa is currently president of the Tokyo-based Institute for International Monetary Affairs.
Reuters
30-06-2025
- Business
- Reuters
South African rand firms on back-to-back economic data
JOHANNESBURG, June 30 (Reuters) - The South African rand firmed in early trade on Monday after the release of higher than expected money supply and private sector credit figures and ahead of trade and budget balance data due later in the day. At 0642 GMT the rand traded at 17.6950 against the dollar , up about 0.6% from Friday's close. Central bank data earlier showed South Africa's money supply growth last month was at 6.86%, up from 6.12% in April. Credit growth for May came in at 4.98%, from 4.60% the previous month. Nedbank economists had forecast both indicators to show declines year on year. Money supply figures often give insights into consumer demand strength, which could influence trade balance (ZATBAL=ECI), opens new tab data due to be released later in the day. South Africa's trade surplus is expected to widen after exports increased faster than imports last month, Nedbank economists said in their research note. "Imports continue to benefit from a more favourable domestic environment, with lower inflation, declining interest rates and a resilient rand boosting demand," the note said. Investors are also awaiting budget balance numbers (ZABUDM=ECI), opens new tab for the same month. South Africa's benchmark 2035 government bond was stronger in early deals, with the yield falling by 3 basis points to 9.93%.
Zawya
25-06-2025
- Business
- Zawya
Saudi: Non-oil exports surge 24.6% to $7.57bln in April 2025
RIYADH — Saudi Arabia's merchandise exports amounted to SR90.3 billion in April this year, marking a 10.9 percent decrease compared to April 2024. Non-oil exports, including re-exports, recorded an increase of 24.6 percent, reaching SR28.4 billion, compared to the same period last year, according to the International Trade Statistics Bulletin for April 2025, released on Wednesday by the General Authority for Statistics (GASTAT). There has been an increase of 18.3 percent in imports, reaching SR76.1 billion in April. However, the trade surplus declined sharply by 61.7 percent, dropping to SR14.2 billion compared to April 2024, the GASTAT report pointed out. The bulletin indicated that there was a rise in the ratio of non-oil exports, including re-exports to imports, reaching 37.2 percent in April 2025, up from 35.4 percent in April 2024. Meanwhile, the share of oil exports in total exports decreased from 77.5 percent in April 2024 to 68.6 percent in April 2025. Chemical industry products were the top non-oil export goods, amounting to SR6 billion and accounting for 26.4 percent of total non-oil exports. The largest category of imported goods was "machinery, electrical equipment, and their parts," which totaled SR21.1 billion, representing 26 percent of total imports. The bulletin also showed that China remained the Kingdom's top trading partner. Exports to China totaled SR11.4 billion, accounting for 12.6 percent of total exports in April 2025, while imports from China reached SR19 billion, representing 25 percent of total imports for the same month. The International Trade Statistics are based on administrative records from the Zakat, Tax and Customs Authority for non-oil data and the Ministry of Energy for oil data, where the Kingdom's exports and imports are classified according to the 2022 Harmonized Commodity Description and Coding System. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
