TOKYO—Japan rejected growing international criticism that it is easing its monetary policy to drive down the yen, with Tokyo's finance minister on Friday characterizing concerns expressed by German Chancellor Angela Merkel as "misplaced."

Despite growing claims that Tokyo is resorting to a beggar-thy-neighbor policy of weakening its currency to give its exports a competitive edge, Japanese officials continue to stand by their position that the yen's recent weakening is a correction from its excessive strength.

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