BOJ’s Kuroda: Don't think current weak yen is a bad thing

Dhwani Mehta FXStreet

Commenting on the recent depreciation in the yen, the Bank of Japan (BOJ) Governor Haruhiko Kuroda said that he doesn’t think the current weak yen is a bad thing.

Additional quotes

No comment on forex levels, short-term moves.

Degree of weak yen pushing up exports has become lesser in extent.

Weak yen pushes up costs for households and importers.

Desirable for FX to move stably reflecting economic fundamentals.

Yen decline also leads to higher energy import costs.

Takes time for higher energy prices to be reflected in inflation data.

Biggest reason for rising product prices is expansion of global demand, positive for Japan exports.

YCC could bring weak yen as it widens interest rate differentials vs overseas.

Don't think US tapering has direct impact on interest rates, currencies.

Action by other central banks won't have impact on Japan’s monetary policy.

Current yen moving within range of economic fundamentals.

No comment on real effective yen rates.

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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