Investors have seen the yen sharply depreciate to its latest 20 -year low in the Asian session after being shown by household spending data that continued to show a fall in April.
As the yen returns to its 132.00 price level against the USD, Finance Minister Shunichi Suzuki said it was important for the exchange rate to remain stable and reflect the fundamentals of the economy.
He added that the government was observing the movement of the foreign exchange market and its impact on the Japanese economy with a sense of urgency, or need for immediate action.
However, the Governor of the Central Bank of Japan (BOJ), Haruhiko Kuroda who spoke in parliament on the same day, continued to insist he would remain with low interest rates for now.
The yen weakened after he reiterated his commitment to stay with very loose monetary policy and limit yields on Japan’s 10 -year government debt.
He also referred to data published in the Asian session, saying that households are increasingly accepting of the situation of rising prices.
According to him, the purpose of the BOJ is not just to raise prices, on the contrary, want to create a positive cycle where prices rise in line with wage growth and stronger economic activity.
