Comments by BOJ governor Kuroda in parliament
- No one thing decides currency levels
- Yield spreads can affect currency moves
- Doesn't believe current BOJ policy is weakening the yen
- BOJ policy doesn't target currency levels
- BOJ policy is aimed at stabilising prices
- Believes that this view is understood by the US
A very coordinated effort by Japanese officials here, in trying to say defend their current position. They are well aware of how US-China trade talks are developing and the involvement in which the Chinese yuan has in those talks.
Right now, they are surely fearing that future talks with the US will follow a similar path and that Trump will be asking for the yen to be strengthened against the dollar. However, that will be a major setback for the Japanese government and BOJ as they seek to achieve their 2% inflation target.
