MNI BRIEF: BOJ's Kuroda Says Rapid Forex Moves Undesirable

Bank of Japan Governor Haruhiko Kuroda Monday repeated that rapid movements of foreign exchange rates are undesirable and the BOJ continues to carefully monitor forex moves, while closely cooperating with the government.

“Rapid forex moves are increasing uncertainties and making it difficult for businesses to project their business plans, and are undesirable,” Kuroda told business leaders in Nagoya City. (See MNI BRIEF: BOJ's Kuroda Says CPI To Slow After Rising Above 3%)

But he didn’t elaborate on the recent yen’s rise caused by weaker-than-expected consumer price index in the U.S. and speculation over slower rate hikes by the Federal Reserve. (See MNI BRIEF: BOJ To Keep Easy Policy To Support Economy)

He added that the BOJ continues to carefully monitor developments in forex exchange rates and their impact on businesses, and the bank maintains easy policy to firmly support economic activity.

Kuroda said that the BOJ must pay attention to downside risks to global economies caused by rate hikes by central banks.

It is necessary to carefully monitor the impact of global economy on financial markets, for example, adjustments in asset prices and capital outflows from emerging economies.