The BOJ Deputy Governor reiterated his vigilance on the impact of foreign exchange rates on the economy
Bank of Japan Deputy Governor Masayoshi Amamiya speaks during an event hosted by Reuters Newsmaker in Tokyo, Japan July 5, 2019. REUTERS/Issei Kato
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TOKYO, June 24 (Reuters) – The Bank of Japan needs to closely monitor the impact that currency movements could have on the economy, its deputy governor Masayoshi Amamiya said on Friday, repeating a 24-year warning of the damage the currency’s fall would do -Lows could have pointed to a fragile recovery.
Amamiya said the world’s third-largest economy is recovering as a trend but faces “extremely high” uncertainty due to the fallout from the Ukraine crisis and rising commodity prices.
“Against this backdrop, we need to closely monitor the impact that movements in financial and foreign exchange markets could have on Japan’s economy and prices,” Amamiya said in a speech.
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“The BOJ will continue to support the economy with monetary easing to achieve its inflation target in a sustainable and stable manner, accompanied by wage increases,” Amamiya said in a speech.
The dollar slipped to 134.795 yen on Friday as investors assess whether aggressive US interest rate hikes could trigger a recession, falling from a 24-year high of 136.71 hit on Wednesday.
A weak yen has been a headache for Japanese policymakers as it pushes up the cost of already rising fuel and commodity imports, hurting retailers and households just recovering from the pain of the COVID-19 pandemic.
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Reporting by Leika Kihara; Adaptation by Tom Hogue and Toby Chopra
Our standards: The Thomson Reuters Trust Principles.
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