BoJ’s Ueda: Important for FX rates to move stably, reflecting fundamentals

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BoJ’s Ueda: Important for FX rates to move stably, reflecting fundamentals
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The Bank of Japan (BoJ) Governor Kazuo Ueda said on Friday that foreign exchange is one of the important factors that affect economic price developments and the Japanese central bank will continue to work closely with the government to monitor FX movements and their impact on the economy and prices.

The Bank of Japan Governor Kazuo Ueda said on Friday that foreign exchange is one of the important factors that affect economic price developments and the Japan ese central bank will continue to work closely with the government to monitor FX movements and their impact on the economy and prices. Key quotes “Won't comment on short-term FX moves.” “Does not directly target FX in guiding monetary policy.” “FX is among the key factors that affect economic price developments.

How do the decisions of the Bank of Japan impact the Japanese Yen? One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners.

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