By Megumi Fujikawa
Bank of Japan Gov. Haruhiko Kuroda said Thursday that he still believes a weak yen is positive for the Japanese economy on the whole, although excessive moves in the foreign exchange market could have negative effects.
The comment came after the yen weakened to more than 130 versus the dollar for the first time since April 2002. The yen widened its loss after the BOJ announced it would purchase 10-year Japanese government bonds at a yield of 0.25% every business day to ensure the yield doesn’t exceed that level.
Mr. Kuroda said Thursday’s announcement was aimed at avoiding the BOJ’s market operations to cause unnecessary speculation.
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