Japan strongly opposes linking FX to trade

The Japanese and US negotiators failed to reach an agreement Thursday on whether exchange-rate policies should be a part of bilateral trade talks. 

Japan has reportedly made it clear that the issues pertaining to the exchange rate should be discussed separately. 

“We strongly oppose any conditions that would tie our hands on monetary policy and harm our national interest,” a Japanese government source said yesterday, according to Nikkei. 

Washington, however, pushing for language barring competitive currency devaluations in its trade agreement with Japan.