US Treasury says Japan no longer faces deflationary environment, yen level must change

By Reuters News

BANGKOK, Oct 16 (Reuters) - Japan no longer faces the deflationary environment that existed for more than a decade, and the level of its currency and monetary policy must change accordingly, US Treasury Undersecretary Erin Browne said on Friday.

Browne, in Bangkok for the annual meetings of the International Monetary Fund and World Bank, said US and Japanese officials worked closely together at all levels to support stable, well-functioning markets and would continue to do so.

"Sharp, disorderly currency moves can ... really create much wider consequences that force investors to unwind positions and creates volatility across markets, and potentially raises financing costs in both the United States, and really globally," Browne told reporters.

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