Forex Intervention Effects Not to Last Long: Ex-BOJ Gov. Kuroda

Tokyo, May 14 (Jiji Press)--Former Bank of Japan Governor Haruhiko Kuroda has indicated that the effects of foreign exchange market interventions will not last long.

At an event held in Tokyo on Wednesday, Kuroda said that the BOJ's recent yen-buying, dollar-selling interventions "had a certain effect" in propping up the Japanese currency against the greenback.

Still, he added, "It is difficult for intervention effects to last long."

"With the strength of the Japanese economy taken into consideration, the dollar would be balanced around 120-130 yen," the former top Japanese central banker said, indicating that the yen's current rates of slightly under 160 against the dollar are too weak for the Japanese currency.

"If speculative traders suffer major losses as a result of currency interventions (by authorities) and pull the plug, the effects of the actions could be sustained," Kuroda said. "Usually, however, the effects of interventions would hardly last for weeks or months," he also said.

[Copyright The Jiji Press, Ltd.]