BOJ chief: Yen's rapid weakening is undesirable for Japanese economy

The chief of Japan's central bank says the rapid weakening of the country's currency is undesirable for the Japanese economy.

Bank of Japan Governor Kuroda Haruhiko spoke before a Diet committee meeting on Monday. The yen fell to the lower-135 level against the dollar on the day for the first time in nearly 24 years.

Kuroda said the yen's rapid depreciation increases uncertainty about the future and has a negative impact on the economy. He said the yen's weakening makes it difficult for companies to make business plans.

He expressed hope that companies whose earnings have improved due to the weaker yen will increase capital investment and raise wages.

The Bank of Japan Governor said it is important for a positive cycle between income and spending to strengthen.

He added the BOJ will coordinate with the government and continue to monitor movements in the foreign exchange market and their impact on the Japanese economy and prices.

Finance Minister Suzuki Shunichi said the yen's decline has both positive and negative aspects. He said the negative impact now seems to be larger as wage increases are weak compared to rising import prices.