MNI BRIEF: BOJ's Kuroda Says US Dollar Views Not 'Proper'

Bank of Japan Governor Haruhiko Kuroda said on Thursday that it is was not necessarily proper that market participants were focused on the interest rate gap between the U.S. and Japan and viewed the U.S. dollar as continuing to be the only strong currency.

Kuroda told lawmakers that the U.S. dollar appreciated against other currencies despite rate hikes by other central banks.

“The U.S. economy would contract in the wake of rate hikes. The Federal Reserve pointed out the possibility and adjustments of financial markets will be possible,” he said.

The rapid and one-sided drop in the yen had paused in the wake of forex intervention, he said, adding that it was difficult for predict the outlook for foreign exchange rates.