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| At its two-day policy-setting meeting last week, the BOJ maintained its ultralow rate policy, in contrast with U.S. and European central banks that have been raising interest rates to control inflation, moves which have prompted investors to sell the Japanese currency. (Photo by= Kyodo) |
[Asia News = Reporter Reakkana] TOKYO: Prime Minister Fumio Kishida and Bank of Japan Governor Haruhiko Kuroda on Monday discussed the yen's rapid depreciation against the U.S. dollar, with the two seeing the current market situation as a "matter of concern." Kishida told reporters after meeting at the prime minister's office that "there were talks that the sharp fall of the yen represents a matter of concern."
Kuroda said separately he told the prime minister that the yen's sharp depreciation is "undesirable" because it will bring various uncertainties to companies' business plans, Kyodo reported. The central bank will closely monitor currency movements and respond appropriately in coordination with the government, the BOJ chief said. Kuroda, however, said he did not receive any particular instructions from Kishida. Kishida and Kuroda meet regularly at the prime minister's office. They met Monday for the first time since their last talks on March 30, when the dollar traded at around 122 yen.
The meeting came after the yen tumbled to a 24-year low of around 135.60 against the dollar last week on expectations of a further widening of the interest rate gap between Japan and the United States. On Monday, investors moved to buy the yen at one point as reports spread that Kishida and Kuroda discussed the weakening of the yen.
