BOJ’s Kuroda: If yen moves not too sharp, weak yen is beneficial for Japan’s economy
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Finally commenting on the latest yen slide, Bank of Japan (BOJ) Governor Haruhiko Kuroda said Tuesday, “if yen moves are not too sharp, weak yen is beneficial for Japan’s economy.
Additional comments
No comment on fx levels.
Very important for fx to move stably reflecting fundamentals.
Impact of weak yen varies, uneven for each entity.
Weak yen positive to economy as a whole.
Carefully watching impact of fx on economy.
Must be mindful that weak yen could have negative impact on households, smaller service-sector firms.
Must create economic conditions where wages and prices rise more easily.
Big yen decline in short period of time is negative for economy.
Weak yen could be negative for many households, small firms even as it is positive for economy overall.
If forex moves reflect fundamentals, we won't be experiencing rapid yen declines or rises.
My comment on households' acceptance on price hike may not have been appropriate.
Difficult to say yen carry-trades have increased due to interest rate differentials.
Would proceed with exit strategy if 2% inflation target in sight but now is not that time.
Meanwhile, a senior BOJ official said that a “sharp yen weakening, as seen recently, is undesirable.”
Market reaction
USD/JPY has paused its upsurge near 132.75 on the latest comments from the BOJ Chief Kuroda on the ongoing yen moves.
The spot is now trading at 132.68, still up 0.62% on the day.
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