The Bank of Japan’s Governor Kuroda mentioned that a weak yen pushes up the value of Japan firm’s profits earned overseas, which helps boost capital expenditure and wages. He continued to state that the weak yen is positive for the Japanese economy as a whole.
Concerns were raised that the benefits of the yen weakness could be uneven across industries and that a weak yen negatively impacts household’s real income and firms that are reliant on imports. On the whole, the comments have been viewed in a positive light with regard to the current USD/JPY bull run despite the pullback.
