The U.S. Treasury Department has called on the Bank of Japan (BOJ) to continue raising interest rates, saying further monetary policy normalisation would help contain inflation expectations and curb excessive volatility in the yen, according to a Reuters report.
In its semi-annual currency report released in Washington on Thursday, the Treasury said the yen has remained weak despite a narrowing in U.S.-Japan interest rate differentials. It noted that while global factors such as financial market volatility and higher oil prices have influenced the currency, excessive swings in the yen are undesirable.
