Japan Reiterates a Currency Weakening Policy, Yen Falls After Three Days of Upside

“Japan’s deputy economy minister said that a yen at 100 to the dollar wouldn’t be a problem, indicating global criticism may fail to convince Prime Minister Shinzo Abe to temper his push to weaken the currency.
“The current level around 90 can be said to be a correction of the strong yen, but it isn’t over yet,” Yasutoshi Nishimura said in an interview today in Tokyo. He said a level of 110 to 120 would raise import costs, echoing the view of Abe’s adviser Koichi Hamada and suggesting that the government won’t back a currency free-fall.

Nishimura joins Japanese officials pushing back at international criticism as the yen’s 8 percent decline in two months causes friction ahead of February’s Group of 20 meeting. He said theBank of Japan (8301) will need to pursue bolder monetary easing to achieve its new 2 percent inflation target, speaking after data today showed exports fell for a seventh month and a record annual trade deficit….”

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