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

Currency signs of Japanese Yen, Euro and the U.S. dollar are seen on a board outside a currency exchange office at Narita International airport, near Tokyo, Japan, March 25, 2016. REUTERS/Yuya Shino

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  • Kuroda told PM FX must move stably in line with fundamentals
  • Recent rapid yen weakening undesirable as raises uncertainty
  • PM Kishida did not tell Kuroda anything special – BOJ gov

TOKYO, June 20 (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.

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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. read more

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Reporting by Tetsushi Kajimoto and Leika Kihara;
Editing by Chang-Ran Kim and Sam Holmes

Our Standards: The Thomson Reuters Trust Principles.

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