Japan’s Top Currency Diplomat: Weak yen has merits and demerits for economy

Dhwani Mehta FXStreet

Commenting on the yen, Japan's top currency diplomat Masato Kanda said a weak yen has its merits and demerits for the economy.

Additional quotes

There are both positive and negative effects of a weak yen, it's hard to say which is bigger.

Weak yen pushed up the import cost of energy and food, increasing household burdens.

The value of a weak yen for exporters isn't as strong as in the past because they're not competing on low-cost items on price.

We need to guide policy and understand that the way the exchange rate affects the economy has changed.

Read: USD/JPY snaps two-day downtrend to regain 115.00 as Japan diplomat discusses weak yen

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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