Forex Intervention Necessary, Appropriate: BOJ's Kuroda

Economy Politics

Osaka, Sept. 26 (Jiji Press)--Bank of Japan Governor Haruhiko Kuroda said Monday that the country's yen-buying, dollar-selling intervention on Thursday was necessary and appropriate.

The intervention was a "necessary and appropriate response to excessive fluctuations" in exchange rates, Kuroda told a press conference in the western Japan city of Osaka.

"Recent rapid and one-sided moves negatively affect our country's economy," Kuroda said of the yen's slide, adding that they "heighten uncertainty and are not desirable."

Kuroda dismissed the view that the BOJ's continued monetary easing would weaken the effect of foreign exchange intervention, saying: "I don't think that at all. There is no contradiction."

"Foreign exchange intervention and monetary policy have different goals and effects, but the combination of them creates a better situation," the BOJ governor said.

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