Japan rejects Trump accusation of devaluing yen in currency war

The US president, who said countries ‘play the market while we sit like a bunch of dummies’, signals possible retreat from strong dollar policy

Japan has rejected Donald Trump’s claims that Tokyo was deliberately weakening the yen to gain an unfair trade advantage over the US.

Trump told a meeting of pharmaceutical companies on Tuesday that Japan, along with China and Germany, were guilty of “global freeloading” for using regulation and currency devaluation in their trade dealings with the US.

Related: A tumultuous year: the 2016 global economy in 10 charts

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UK growth forecast upgraded amid warning over inflation

Leading economic thinktank the NIESR expects 1.7% growth this year but says Brexit will hit trade in the long term

The surprising resilience of consumer spending in the months since the Brexit vote has forced one of the UK’s leading economic thinktanks to revise up its growth forecasts for the second time since the referendum.

In its quarterly health check of the economy, the National Institute for Economic and Social Research (NIESR) said it now expected growth of 1.7% this year – only slightly down on the 2% recorded in 2016.

Related: UK GDP figures show solid end to 2016 despite Brexit vote

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