MNI BRIEF: BOJ To Watch Forex Impact, Prices - Ueda
BOJ Governor Kazuo Ueda noted the Bank will watch yen weakness closely.
Bank of Japan Governor Kazuo Ueda said on Friday that the BOJ will continue to monitor carefully developments within the foreign exchange markets and their impact on economic activity and prices.
However, Ueda told lawmakers the Bank does not directly target forex, but noted it is important for exchange rates to move stably and reflect economic fundamentals. The BOJ will remain in close contact with the government, he added.
When asked about the yen’s fall despite the BOJ’s decision to terminate the negative interest rate, Ueda said forex rates move due to various factors, including speculative views over the outlook for monetary policy at home and abroad. (See MNI BOJ WATCH: Ueda Says Rate Path Will Depend On Prices)