The Governor of the Central Bank of Japan (BOJ), Haruhiko Kuroda told that the movement of the yen falling to its lowest level could affect the company’s business plan.
This is his strongest warning so far about the weakness of the currency's depreciation, prompting the yen to rise slightly following the statement.
However, the increase recorded did not last long, seeing the ninja currency return to a 20 -year low against the greenback dollar.
However, Kuroda reiterated his view that the BOJ must maintain its massive stimulus program to support the still-weak economic recovery.
He also still does not change the view that a weak yen is positive for the economy as a whole. The impact of the yen’s weakness is also not restrictive depending on the sector and corporate size.
Of late, some BOJ policymakers have voiced their concerns about the yen’s fall, especially after it touched the 125 price level against the USD.
While markets expect that the BOJ will acknowledge increased inflation risks at its policy meeting later this month and not make any changes, analysts argue that a weaker yen will put pressure on Kuroda to act soon.
