BoJ’s Kuroda joins warnings against ‘rapid’ yen moves

BoJ’s Kuroda joins warnings against ‘rapid’ yen moves

TOKYO, Sept 9 – Bank of Japan Governor Haruhiko Kuroda said rapid yen movements are undesirable after a meeting with Prime Minister Fumio Kishida on Friday, joining a chorus of policymakers. that are issuing verbal warnings about the currency’s recent sharp drop to 24-year lows.

“Sharp currency movements are not desirable as they destabilize companies’ business plans and increase uncertainty,” Kuroda told reporters after the meeting, which he described as an occasional catch-up between the two sides to discuss issues. general economic and financial

“When the yen moves 2-3 yen a day, it’s a fast move,” Kuroda said, when asked about the recent fluctuations in the Japanese currency.

The dollar soared more than 2 yen on both Tuesday and Wednesday, hitting 144.99 per dollar — its highest since August 1998 — before stabilizing.

“We will carefully monitor exchange rate movements,” Kuroda told reporters after Friday’s meeting with Kishida.

He added that although the two discussed market developments, including currency movements, he did not receive any specific policy requests from the prime minister.

The dollar fell to 143.10 yen after Kuroda’s remarks and extended its decline to 142.43. The last time it fell was 1% to 142.75, its biggest one-day drop in a month.

Kuroda’s remarks came after Finance Minister Shunichi Suzuki said on Friday that the government would not rule out any options on currency movements, repeating a warning made Thursday by the country’s top foreign exchange diplomat, Vice Minister of Finance for International Affairs, Masato Kanda.

“We have seen a rapid increase in market volatility against a background of speculative moves,” Suzuki told reporters, adding that authorities were “very concerned” about such moves.

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