BoJ Governor Haruhiko Kuroda told parliament today that the biggest factor on markets’ trust in Yen is BoJ’s commitment to price stability. He said “currency rates move on various factors, so it’s hard to judge market trust in the yen by looking at exchange-rate fluctuations alone.” Instead, “confidence in the central bank’s policy is a big factor behind market trust in the country’s currency”.
Kuroda also said BoJ is watching exchange-rate moves carefully. However, currency policy falls under the jurisdiction of the Ministry of Finance. Thus, “BOJ would not do something for exchange-rate stability”.
