Yen's weakness a 'natural' reflection of US strength: Kuroda

17/09/2014 08:06 AST

The yen's recent declines against the dollar are in line with U.S. economic conditions, Bank of Japan Gov. Haruhiko Kuroda told reporters Tuesday, signaling once again that he is content to let the Japanese currency slide.

A number of Osaka-area business leaders meeting with Kuroda had voiced anxiety at the steepness of the yen's fall in recent weeks.

The prospect of an uptick in import costs and other negative aspects constitute "a cause for concern," said Shigetaka Sato, chairman of the Osaka Chamber of Commerce and Industry, one of four regional business associations co-hosting the event.

Haruo Shimizu, president of autoparts maker Exedy, called on the BOJ to work with the government to pursue policies that favor "the long-term stability of exchange rates."

Kuroda responded that Japanese policymaking alone cannot ensure a stable currency but assured his audience that the central bank would do its part.

Speaking to reporters afterward, he said the yen's recent weakness "doesn't pose an immediate downside for the Japanese economy." The dollar is gaining strength in "a natural way" as the U.S. economy ticks along and the currency market looks ahead to the end of the Federal Reserve's bond-buying program, Kuroda argued, suggesting that the yen still has more room to fall.

Turning to the BOJ's efforts, Kuroda said the bank would adjust monetary policy "without hesitation" should price growth stray from its 2% target. But the governor stressed that its monetary easing "is having a cumulative effect."

Asian Nikkei