Ueda: We will watch the impact of the weak yen on prices
Bank of Japan (BOJ) Governor Kazuo Ueda said that they will closely monitor the impact of the weak yen on prices.
Bank of Japan Governor Kazuo Ueda spoke to reporters on Tuesday after meeting with Prime Minister Fumio Kishida for the first time since March 19. The two discussed the BOJ’s decision to end the negative interest rate regime at the March board meeting.
Ueda told reporters that he was closely monitoring the impact of the weak yen on prices and stated that he discussed currency movements in his meeting with Prime Minister Kishida.
The BoJ, which attracted attention by ending negative interest rates and increasing interest rates for the first time in 17 years in March, has become the focus of global markets with its possible interventions in the foreign exchange market to stop the sharp decline of the national currency against the dollar.
While the dollar/yen parity rose above 160 for the first time since June 1986 last week, it fell to 151.86 due to the increasing sales pressure from this level. This move strengthened rumors that the BoJ was intervening in foreign exchange markets.