Japan Must Fix 'Misunderstanding' It Is Manipulating Yen, Says Ex-BOJ Chief Kuroda
Kuroda's comments underscore that Japan's central bank was not intentionally weakening the yen with monetary policy, but rather responding to market forces and maintaining efforts to prop up its currency. The BOJ has been intervening in the exchange-rate market to support the yen, and will continue to normalize monetary policy by gradually raising interest rates. The outcome of these efforts is still uncertain, with the dollar currently trading at around 148 yen.
- This clarification from Kuroda highlights the need for more effective communication between Japan's central bank and its government, particularly in regards to international relations and economic diplomacy.
- How will China respond if it perceives that Japan's monetary policy is being driven by a desire to weaken its currency, potentially undermining regional stability and trade relationships?