Japan’s Akazawa: US Dollar’s Reserve Currency Status Remains Solid

Japan’s Akazawa: US Dollar’s Reserve Currency Status Remains Solid

Japan’s chief trade negotiator, Ryosei Akazawa, reaffirmed on Thursday that the US Dollar (USD) continues to hold its status as the dominant global reserve currency despite rising economic and geopolitical uncertainties.

No Pressure on Japan to Support Yen

Speaking at a press conference, Akazawa emphasized that Japan is unlikely to face any requests from the United States to intervene in support of the Japanese Yen (JPY). He noted that current market trends show the USD facing more selling pressure, reducing the chances of diplomatic pressure for coordinated currency action.

“The position of the dollar as the world’s reserve currency remains intact,” Akazawa stated.

Forex Market Perspective

Akazawa’s remarks come amid heightened volatility in global currency markets, driven by tariff policies, inflation concerns, and divergent central bank strategies. Despite temporary fluctuations, his comments signal continued confidence in the USD’s foundational role in global finance.

Key Takeaways for Traders

• The USD remains structurally strong as a reserve asset
• Japan is not expected to act on any coordinated currency support measures
• Investors should watch for US monetary policy and trade rhetoric for further direction