Q+A-Key economic ties between U.S. and Japan

Tue Nov 10, 2009 4:10am GMT
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(For full coverage of Obama's Asia visit click [ID:nOBAMAASIA])

By Yoko Nishikawa

Nov 10 (Reuters) - U.S. President Barack Obama meets his Japanese counterpart Prime Minister Yukio Hatoyama in Tokyo on Friday, bringing together the leaders of the world's two largest economies.

Ahead of those discussions U.S. Treasury Secretary Timothy Geithner visits Japan, meeting Finance Minister Hirohisa Fujii on Tuesday to discuss currency issues and policies for strong, sustainable and balanced growth. [ID:nT342299]

Fujii will hold a news conference after the dinner meeting with his comments expected sometime after 9:40 p.m. (1240 GMT).

Below are questions and answers on the economic ties between the two nations.

WHAT IS JAPAN'S POLICY ON THE YEN?

Soon after Japan's new government under Hatoyama took power in September, Fujii rattled foreign exchange markets by suggesting he favoured a strong yen. He later said he had never explicitly called for a stronger currency, after markets sent the yen soaring. [ID:nT337529]

But market players are not fully convinced Fujii has abandoned his view a strong yen would boost domestic demand as Tokyo seeks to wean the economy from export dependency.  Continued...

 
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