The Obama administration is racing to finish negotiations on a Pacific free-trade pact by year's end, but it's running up against a potentially major obstacle at home.
A bipartisan majority in the Senate this week sent a letter pressing the administration to address "foreign currency manipulation" in its talks with Japan and 10 other participating nations in the so-called Trans-Pacific Partnership.
The Senate letter didn't mention any country. But there has been an outcry in congressional and business circles, particularly the auto industry, over Japan's much-weakened currency. The yen has fallen more than 25% against the dollar since last October when Japanese officials began focusing on a devaluation to stimulate economic growth. A weaker currency can boost that country's exports by making its goods cheaper in foreign markets.