BOJ Kuroda calls for forex stability as yen plunges

DRESDEN, GERMANY – Bank of Japan Gov. Haruhiko Kuroda on Wednesday called for stability in the foreign exchange market as the dollar continues expanding its gains after topping ¥123 for the first time in nearly eight years the previous day.

“It is desirable for foreign exchange rates to move in a stable manner reflecting economic fundamentals,” Kuroda told reporters upon arriving in Dresden, eastern Germany, to attend a Group of Seven financial meeting.

The dollar climbed to as high as ¥123.78 in New York trading on Wednesday morning, the highest level since June 25, 2007. Kuroda declined comment on specific dollar-yen rates.

Kuroda said he does not believe that currency market developments will be a major topic in discussions on the global economy at the meeting of finance ministers and central bank chiefs of the seven major industrial countries — Britain, Canada, France, Germany, Italy, Japan and the United States.

Meanwhile, the BOJ chief said that inflation in Japan is expected to start accelerating in the second half of fiscal 2015, which ends in March 2016, and near the bank’s target of 2 percent, noting that a virtuous circle remains in place in the Japanese economy.