TOKYO-Bank of Japan Governor Haruhiko Kuroda on Friday expressed concern over the yen’s rapid weakening after hitting its weakest level against the US dollar since 1998 earlier this week.
“Rapid movements in exchange rates, as have been observed in recent weeks, are not desirable as this would bring great uncertainty to companies’ business planning. It’s negative for the economy,” Mr Kuroda said at a news conference.
The comment signals a stronger warning from Mr Kuroda, who previously said a weak yen USDJPY,
overall be positive for the Japanese economy by boosting overseas corporate profits.
Earlier in the day, the bank’s policy board decided to keep interest rates ultra-low, bucking a global trend of monetary tightening amid inflation.
Read: Here’s what’s at stake for markets as the Bank of Japan remains dovish
The Japanese economy is still on its way to recovering from the pandemic and it is not appropriate to raise interest rates now, Mr Kuroda said.
Write to Megumi Fujikawa at firstname.lastname@example.org
https://www.marketwatch.com/story/boj-s-kuroda-says-rapid-yen-weakening-negative-for-economy-271655452473?rss=1&siteid=rss BOJ’s Kuroda says the rapid weakening of the yen is having a negative impact on the economy