Bank of Japan Governor Haruhiko Kuroda said Prime Minister Fumio Kishida gave no special instructions when he met with him today. The remarks imply that the Japanese government tacitly approves of the central bank’s decision to continue monetary easing.
Kuroda said after the meeting that the government and the central bank will continue to closely monitor currency movements and will cooperate to take appropriate actions. The meeting between the two was the first since late March; the yen fell to a 24-year low against the dollar last week after the central bank made a monetary policy decision.
“He didn’t say anything special, but I said to him that the foreign exchange market should reflect economic, financial fundamentals and fluctuate smoothly,” Kuroda said. “The yen’s recent rapid decline has created uncertainty in corporate planning, which is not desirable.”
Kuroda’s comments on the foreign exchange market were largely consistent with his previous remarks.
The yen traded at around 134.69 yen to the dollar on Monday afternoon after hitting its lowest level since 1998 last week. The Bank of Japan’s dovish policy stance compared to the Fed’s hawkishness contributed to the yen’s depreciation.
Source: Finance WorldReturn to Sohu, see more
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