Forex News – Kuroda reiterates that BOJ is not targeting currency rate
May 10, 2013 12:29 pm
The yen has reached four year lows against the dollar and has begun raising concerns again about currency wars.
As the G7 meeting begins this weekend, there is talk yet again about Japan’s recent measures that have led to a weakening currency and could created tension with its trading partners at the G7 gathering.
However Bank of Japan governor Haruhiko Kuroda, speaking on Friday ahead of the G7 on London said that the BOJ monetary policy does not target currency rates and is instead aimed solely at achieving its 2 percent inflation goal in roughly two years.
“The Bank of Japan isn’t targeting currency rates, which are determined by the markets,” Kuroda said when asked by reporters today.
Focus will be on the G7 meeting to see if Japan will be criticized for its policies that have weakened the yen and has given Japan a competitive advantage.
Japan has a very export-reliant economy, so a weaker yen will make its exports cheaper.
The yen has reached four year lows against the dollar and has begun raising concerns again about currency wars.
As the G7 meeting begins this weekend, there is talk yet again about Japan’s recent measures that have led to a weakening currency and could created tension with its trading partners at the G7 gathering.
However Bank of Japan governor Haruhiko Kuroda, speaking on Friday ahead of the G7 on London said that the BOJ monetary policy does not target currency rates and is instead aimed solely at achieving its 2 percent inflation goal in roughly two years.
“The Bank of Japan isn’t targeting currency rates, which are determined by the markets,” Kuroda said when asked by reporters today.
Focus will be on the G7 meeting to see if Japan will be criticized for its policies that have weakened the yen and has given Japan a competitive advantage.
Japan has a very export-reliant economy, so a weaker yen will make its exports cheaper.
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