Bank of Japan Governor Haruhiko Kuroda voiced concern Monday about the adverse effects the yen’s ongoing strength could have on the Japanese economy.
“The yen’s current round of uptrend could have unfavorable impacts on the economy,” he told journalists in Frankfurt, adding he is closely watching what effects financial market movements would have on economic and price stability.
Kuroda also reiterated his oft-stated position that the Japanese central bank will take additional monetary easing steps if its 2 percent inflation target is deemed difficult to hit.
The yen briefly rose to an 18-month high against the U.S. dollar in the lower 106 range in Tokyo on Monday, amid receding expectations that Japanese monetary authorities would intervene to arrest the yen’s strength.
Kuroda is currently visiting Frankfurt to attend a series of financial meetings involving Japan, China and South Korea, as well as Southeast Asian countries.