BOJ’s Kuroda: If moves are not too sharp and stable, weak yen is positive for Japan’s economy

Dhwani Mehta FXStreet

Commenting on the exchange rate value, Bank of Japan (BOJ) Governor Haruhiko Kuroda said, “if moves are not too sharp and stable, weak yen is positive for Japan’s economy.”

Additional quotes

Central banks' basic understanding is to maintain monetary easing unless cost-push inflation leads to second-round effects such as heightening inflation expectation, wage growth.

Impact of weak yen is uneven depending on sector and size of each company.

Very important for forex rates to move stably reflecting economic, financial fundamentals.

What's important is for companies that saw profits rise from weak yen increase capex, wages and strengthen positive economic cycle.

Resumption of inbound tourism will help smaller, service-sector firms in regional Japan.

Market reaction

USD/JPY was last seen trading at 130.57, down 0.22% on the day.

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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