February 2, 2015 / 6:26 AM / 3 years ago

BOJ Kuroda says recent weak yen not big threat to economy

TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Monday he did not think the recent weakening of the yen was severely hurting the country’s economy.

Bank of Japan (BOJ) Governor Haruhiko Kuroda speaks during a news conference at the BOJ headquarters in Tokyo January 21, 2015. REUTERS/Toru Hanai

“It’s desirable for exchange rates to move stably in a way that reflects economic fundamentals,” Kuroda told parliament.

“If the yen is indeed moving in that manner, I don’t think it will have a negative effect on the economy as a whole.”

A weak yen boosts profits at big exporters, but hurts small non-manufacturers and squeezes households’ disposable income by pushing up the cost of imports, Kuroda said.

Reporting by Leika Kihara; Editing by Chang-Ran Kim

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