Japan’s deputy economy minister said that a yen at 100 to the dollar wouldn’t be a problem, suggesting global criticism may fail to convince Prime Minister Shinzo Abe to temper his campaign to weaken the currency.
“The current level around 90 can be said to be a correction of the strong yen, but it isn’t over yet,” Yasutoshi Nishimura said in an interview today in Tokyo. He said a level of 110 to 120 would raise import costs, echoing the view of Abe’s adviser Koichi Hamada and suggesting that the government won’t back a currency free-fall.
Nishimura joins Japanese officials in pushing back at international complaints as the yen’s 8 percent decline in two months causes friction ahead of next month’s Group of 20 meeting. He said the Bank of Japan (8301) will need to take “bolder monetary easing” to achieve its new 2 percent inflation target, speaking after data showed a seventh monthly fall in exports and a record annual trade deficit.