Yen weaker but not negative for Japan economy: Bank of Japan chief

Oct 29 , 2021. 16 hours ago – 16:45 KYODO NEWS

Bank of Japan Governor Haruhiko Kuroda arrives at the central bank’s head office in Tokyo for a policy-setting meeting on Oct. 28, 2021, wearing a mask for protection against the coronavirus. (Pool photo) (Kyodo) ==Kyodo

TOKYO – The yen has been weakening against the U.S. dollar, but that is unlikely to be a negative for the Japanese economy, Bank of Japan Governor Haruhiko Kuroda said Thursday.

Speaking at a press conference after a two-day policy-setting meeting, Kuroda said the softer yen would benefit exports and work positively for the economy.

“The positive impact on exports and corporate profits at the overseas subsidiaries of Japanese companies far exceeds the negative impact of rising import costs,” Kuroda said. “Under the current economic and price conditions, the yen’s weakening to this extent is no doubt a plus.”

The governor reiterated that foreign exchange rates should reflect economic fundamentals and move stably.

The yen’s recent slide against the dollar comes amid the prospect of divergence between Japanese and U.S. monetary policies. Earlier in the month, the dollar hit a four-year high against the yen.

Kuroda made the remarks after the BOJ maintained its ultraloose monetary policy to support the pandemic-hit economy.

Cr. KYODO NEWS