BOJ and govt closely coordinating on FX, Kuroda says after meeting PM

Reuters

17:50 JST, June 20, 2022

TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank hoped to respond appropriately on currency markets in close coordination with the government, issuing a fresh warning against recent sharp yen falls.

“I told the prime minister that recent rapid yen moves were undesirable,” Kuroda told reporters after a meeting with Prime Minister Fumio Kishida at the prime minister’s official residence.

“(Kishida) did not say anything special but I told him that it was important for currencies to move stably reflecting economic fundamentals,” Kuroda added.

Rapid yen weakening as seen recently will bring uncertainty to corporate business planning, he said.

“I’ll fully watch currency movements carefully from now on as well and will appropriately respond to them while liaising with the government.”

Kuroda said he exchanged views with the prime minister on the global economy and financial markets at the meeting, which was part of a routine gathering of the two sides.

The BOJ maintained ultra-low interest rates on Friday and vowed to defend its cap on bond yields with unlimited buying, bucking a global wave of monetary tightening in a show of resolve to focus on supporting a tepid economic recovery.