Catching up on remarks from Kuroda earlier in the session. His remarks on 'excessively weak yen' are intended to lend some support to the currency - Japanese authorities do not want yen falling too rapidly.
- desirable for FX to move stably reflecting econ fundamentals
- sharp yen moves could have negative impacts on economy
- has not changed view that weak yen is positive for economy as a whole
- weak yen's impact is uneven depending on sectors, corporate sizes
- recent yen weakening has been quite sharp
- recent sharp yen weakening could have impact on corporate profit plans
- excessive weak yen or yen's rapid weakening can have more negative impact, but weak yen is basically positive overall
And, more:
- Japan's rising prices due to energy prices
- appropriate to continue monetary easing
- as Japan's energy mostly relies on imports, global commodity rally has only negative impact unlike a weak yen
- too early to debate exit from stimulus policy
You can see the impact of Kuroda's remarks in the chart, below. As I said above the intent is to slow the fall of yen. At this stage the intent is not to reverse it.
