Catching up on remarks from Kuroda earlier in the session. His remarks on ‘excessively weak yen’ are intended to lend some support to the currency – Japanese authorities do not want yen falling too rapidly.
desirable for FX to move stably reflecting econ fundamentals
sharp yen moves
could have negative impacts on economy
has not changed view
that weak yen is positive for economy as a whole
weak yen’s impact is
uneven depending on sectors, corporate sizes
recent yen weakening
has been quite sharp
recent sharp yen
weakening could have impact on corporate profit plans
excessive weak yen
or yen’s rapid weakening can have more negative impact, but weak yen
is basically positive overall
And, more:
Japan’s rising prices due to energy prices
appropriate to
continue monetary easing
as Japan’s energy
mostly relies on imports, global commodity rally has only negative
impact unlike a weak yen
too early to debate
exit from stimulus policy
You can see the impact of Kuroda’s remarks in the chart, below. As I said above the intent is to slow the fall of yen. At this stage the intent is not to reverse it.
