January 16, 2018 / 2:43 AM / 3 months ago

UPDATE 1-Japan finmin: Don't see problem with dollar around 110.80 yen

* Dlr hits 4-mth low below 111 yen on speculation about BOJ exit

* Aso praises Bank of Japan efforts to beat deflation

* Global economy growing, steady FX moves unproblematic -finmin (Adds direct quotes, details on monetary policy)

By Tetsushi Kajimoto

TOKYO, Jan 16 (Reuters) - Japanese Finance Minister Taro Aso said on Tuesday that he did not see problems with the dollar weakening to around 110.80 yen, but that big swings in currencies would be problematic.

Aso also said that he appreciated Bank of Japan Governor Haruhiko Kuroda’s efforts towards achieving its 2 percent inflation target, raising expectations that the central bank chief is likely to be reappointed when his five-year term ends in April.

“The global economy is steadily growing as a whole. With the dollar at around 110.80 yen, I don’t think it is a big deal,” Aso said, when asked about impact of dollar depreciation on Japan and the rest of the world.

“The biggest problem would be sudden up and down movements in currencies. I don’t see problems as long as currency moves are steady,” he added.

The dollar hit a four-month low of 110.58 yen on Monday after Kuroda’s upbeat economic view raised expectations the BOJ could dial back stimulus earlier than expected - a view that heightened after a slight cut in its debt purchases last week.

Despite speculation about normalisation of monetary policy, Aso urged the central bank to continue its monetary stimulus.

“The Bank of Japan has been continuing its efforts to defeat deflation and patiently trying to achieve the price stability target under Governor Kuroda, so we appreciate it.”

Economy Minister Toshimitsu Motegi stuck to government’s standard line that foreign exchange rates are decided by the market based on various factors, when asked about the recent rise in the yen and whether the Bank of Japan triggered it.

“I want to closely monitor the impact that moves in foreign exchange and other financial markets have on Japan’s underlying economy,” he said. (Reporting by Tetsushi Kajimoto; additional reporting by Stanley White; Editing by Chang-Ran Kim and Eric Meijer)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below