Japan PM Abe and BOJ’s Kuroda to Discuss Global Economy

Japanese Prime Minister Shinzo Abe and central bank chief Haruhiko Kuroda met Tuesday and discussed the global economy amid a slump in the yen to the weakest versus the dollar since 2002.

They didn’t discuss the currency, Kuroda told reporters after one of his regular meetings with Abe in Tokyo. It’s desirable for exchange rates to be stable and reflect a nation’s economic fundamentals, he said, declining to comment on the currency’s recent movement.

Etsuro Honda, an adviser to Abe on economic policy, said in an interview earlier Tuesday that a weak yen would encourage companies to shift more production back to Japan. The recent decline in the currency is driven by diverging monetary policies in Japan and the U.S., said Honda.

Bloomberg

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