Japan economy minister Kiuchi:
- FX moves are determined by various factors
- Weak yen pushes up domestic inflation via rising import costs, could push down effective purchasing power of households, some firms
- Weak yen has benefit to economy by pushing up exporters’ profits, domestic capex
- Important for FX moves to reflect fundamentals, be stable
- It’s important to avoid rapid, short-term fluctuations in FX moves
- Will scrutinies impact of FX moves on Japan’s economy
- Govt will cope with rising cost of living from inflation by compiling economic package
The comments on 'FX' are obviously on the yen. The moves in JPY, both against the USD and on the crosses have been wide, and persistently so. Despite these being generic sort of comments, Japanese authorities are for real, they'd like the rate shifts to diminish.
