BOJ’s Kuroda says yen hasn’t lost its credibility

Bank of Japan Gov. Haruhiko Kuroda said Friday that the recent weakening of the yen doesn’t mean the market has lost trust in the Japanese currency.

“It is desirable for foreign exchange rates to reflect economic and financial fundamentals and move in a stable manner,” Kuroda said in a parliamentary committee meeting. A weaker yen is generally positive for the Japanese economy and prices, while its impact is different on each economic entity, he added.

Japan’s Finance Minister Shunichi Suzuki, who attended the same session, voiced caution against any rapid movements in foreign exchange rates and said he was carefully watching potential effects of the yen’s moves on the Japanese economy.

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