Bank of Japan Governor Haruhiko Kuroda said recent rapid yen moves were taking on toll on the economy in remarks which in turn triggered strengthening of the yen.
“Recent yen moves have been very rapid,” Kuroda said in response to questions in parliament Monday. “A significantly weak yen or very rapid moves fuel the negative effects.”
The yen briefly strengthened to 126.25 against the dollar following the remarks, having reached 126.79, before Kuroda spoke.
Kuroda said, it is desirable for the FX rates to reflect economic fundamentals and to move in stable manner.
Given the overall state of the economy, he said it was still appropriate for the central bank to continue with its monetary stimulus.