Bank of Japan Governor Haruhiko Kuroda said on Tuesday that the yen’s recent movements have been “somewhat rapid”, joining a chorus of officials warning that the currency’s sharp declines could affect the country’s import-dependent economy.
The statement represents Kuroda’s strongest warning of the yen’s movement since the currency’s drop to a six-year low last week, and a sign that the Bank of Japan shares the government’s concern about the potential damage to corporate sentiment.
“The yen’s recent movements have been quite rapid,” Kuroda told parliament, adding that the central bank is carefully watching currency movements because of their “huge” impact on the economy and prices.
“It is extremely important that exchange rates move stably, reflecting economic and financial fundamentals,” Kuroda said.
However, he also repeated his view that the weak yen benefits the Japanese economy as a whole, in contrast to some market views that its decline is doing more harm than good as it drives up import costs.
The dollar dipped below 122.4 yen on Kuroda’s statement, then rebounded to close to 123 yen, still below the high above 125 yen reached last week.
Source: CNN Brasil
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