BOJ Kuroda Not Trying to Influence Yen

Bank of Japan Governor Haruhiko Kuroda said he wasn’t trying to influence the yen’s exchange rate in remarks last week that sent the currency climbing against the dollar.

Kuroda last week said in a parliamentary hearing that the yen was “unlikely to weaken further in real effective terms.” Today, he said that the real effective rate — which is a measure of the yen’s trade-weighted, inflation-adjusted value — isn’t an indicator of bilateral exchange rates. He also said Tuesday that he wasn’t intending to say he’s not seeking a weaker yen.

The BOJ governor’s remarks from last week were perceived by some analysts to lessen the case for additional monetary easing, because further Japanese stimulus would typically weaken the yen. They were also regarded as unusual because policy makers usually limit their assessments of exchange rates to comments on the pace of change, rather than the value.