Japanese Prime Minister Shigeru Ishiba denied that Tokyo is trying to weaken its currency after President Donald Trump bumped the yen by accusing Japan and China of gaining an unfair advantage through foreign exchange policy.

Tokyo unlikely to retaliate despite deep unease about impact of potential US tariffs on Japanese firms, as it still needs US security umbrella, analysts say.

The U.S. president said that if Tokyo tries to weaken its currency and put the United States 'at a very unfair disadvantage,' he could unleash more measures.