Bank of Japan Governor "Closely Monitoring Yen Depreciation"

"Monitoring the Impact of Yen Weakness on Price Inflation"

[Image source=Yonhap News]

Kazuo Ueda, Governor of the Bank of Japan (BOJ), Japan's central bank, recently stated that he is closely monitoring the yen's depreciation.

On the 7th, Kyodo News and Nihon Keizai Shimbun reported that Governor Ueda made these remarks after meeting with Prime Minister Fumio Kishida at the Prime Minister's Office.

After the meeting with the Prime Minister, Governor Ueda told reporters that he "confirmed that we will closely monitor" the recent yen depreciation and added, "We will carefully observe what impact it may have on the underlying inflation rate."

This marks a change from his statement at a press conference immediately following the Monetary Policy Meeting on the 26th of last month, where he said, "Currently, the yen's depreciation is not significantly affecting the underlying inflation rate."

That statement was seen as having stimulated the yen's depreciation. Just three days later, on the 29th of last month, the yen-dollar exchange rate exceeded 160 yen per dollar for the first time in 34 years since April 1990. Following several sharp fluctuations in the yen's value, there was analysis suggesting that Japanese foreign exchange authorities intervened directly in the market in response to the yen's depreciation.

Meanwhile, as of 6 p.m. on the same day, the yen-dollar exchange rate is fluctuating around 154 yen per dollar.

This content was produced with the assistance of AI translation services.