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Bank of Japan urged to address yen's plunge

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Tokyo, June 16 (Ajit Weekly News) The Japanese government has heaped pressure on the central bank to help address the yen’s slump, ahead of its two-day policy meeting scheduled to begin on Thursday.

“We expect (Bank of Japan) to appropriately take necessary measures in coordination with the government,” Chief Cabinet Secretary Hirokazu Matsuno told reporters.

The Japanese currency has dropped against the US dollar to its lowest levels in 24 years, fuelling speculations that the central bank will be forced to fine-tune its ultra-loose monetary policy.

The Bank of Japan has kept the interest rates extremely low in contrast with its US counterpart raising rates in stages.

“Excessive volatility and disorderly movements (in foreign exchange rates) adversely impact the stability of the economy and financial system,” Matsuno said.

“We will closely cooperate with US and other monetary authorities and respond appropriately when necessary,” he added.

Matsuno declined to comment on the possibility of the government intervening in the currency market to curb the yen’s decline, which has stricken the country’s economy with surging prices as a result of higher import costs.

–Ajit Weekly News

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