Japan PM Kishida says yen's falling real effective exchange rate reflects low inflation

FILE PHOTO: Japan
FILE PHOTO: Japan's newly-elected Prime Minister Fumio Kishida is applauded after being chosen as the new prime minister, at the Lower House of Parliament in Tokyo, Japan October 4, 2021. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) - Japanese prime minister Fumio Kishida on Friday said Japan's low inflation is a background factor for the falling real effective exchange rate of its currency yen.

"It's desirable for foreign exchange rates to be stable reflecting economic fundamentals, and the government will keep a close eye on economic and market trends," Kishida also said in a parliamentary session.

(Reporting by Kantaro Komiya; Editing by Christopher Cushing)

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