BoJ’s Ueda: Rapid, one-sided Yen falls are negative for economy

Bank of Japan (BoJ) Governor Kazuo Ueda said on Wednesday that rapid, one-sided falls in the Japanese Yen are undesirable and negative for the Japanese economy, per Reuters.

Key takeaways

“Won’t comment specifically on recent fx moves.”

“Important for fx moves to reflect fundamentals.”

“Impact of fx moves vary depending on size, sector of companies.”

“Fx moves are among important factors that affect economy, prices.”

“If risk of weak yen affecting trend inflation significantly is high, we may need to respond with monetary policy.”

“We must be mindful that impact of weak yen on inflation may increase as corporate wage, price-setting behavior changes.”

Market reaction

These comments failed to trigger a significant reaction in USD/JPY. At the time of press, the pair was up 0.4% on the day at 155.33.