BOJ’ Kuroda: Important for forex to move stably reflecting economic fundamentals
Bank of Japan (BOJ) Governor Haruhiko Kuroda crosses wires, via Reuters, during early Monday. The BOJ Boss promotes softer Japanese yen (JPY) while ruling out negative implications of the same on the economy.
Key quotes
Don't see current weak yen as particularly negative for Japan's economy.
Important for forex to move stably reflecting economic fundamentals.
Yen fall pushes up raw material import costs, but boosts value of exports, profits of Japan firms' overseas subsidiaries.
Must look comprehensively at pros, cons of weak yen on japan's economy.
It's true prices of gasoline, some food goods rising but it's not leading to sharp rise in consumer inflation or severely hurting economy.
No decision made yet on fate of boj's pandemic-relief loan scheme after current march deadline.
Will decide on fate of pandemic-relief loan scheme by scrutinising pandemic developments, corporate funding situation.
Even if japan's consumer inflation reaches 1% next year, that won't lead to the boj winding down or abandoning easy monetary policy.
USD/JPY remains indecisive
Following the comments, USD/JPY struggles for a clear direction, recently easing to 113.85 ahead of Monday’s European session.
Read: BOJ’s Kuroda: Don't see China’s property sector woes to trigger huge global shock
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
