BOJ and government closely coordinate foreign exchange operations, Kuroda says after meeting PM

Currency signs of the Japanese yen, euro and U.S. dollar are seen on a sign outside a currency exchange office at Narita International Airport near Tokyo, Japan, March 25, 2016. (Yuya Shino/Reuters)

TOKYO — Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank hoped to respond appropriately in currency markets in close coordination with the government, issuing another warning against the yen’s recent sharp falls.

“I told the prime minister that recent rapid movements in the yen were undesirable,” Kuroda told reporters after a meeting with Prime Minister Fumio Kishida at the prime minister’s official residence.

“(Kishida) didn’t say anything special, but I told him it was important that the currencies move in a stable manner, reflecting the economic fundamentals,” Kuroda added.

The rapid weakening of the yen, as seen recently, will bring uncertainty to corporate business planning, he said.

“I will also carefully monitor currency movements from now on and respond appropriately while liaising with the government.”

Kuroda said he exchanged views with the prime minister on the global economy and financial markets during the meeting, which was part of a routine meeting between the two sides.

The BOJ kept interest rates ultra-low on Friday and pledged to defend its ceiling on bond yields with unlimited buying, thwarting a global wave of monetary tightening in a show of determination to focus on supporting the economy. tepid economic recovery.

By Leika Kihara and Tetsushi Kajimoto