BOJ chief discusses weak yen with PM Kishida

Bank of Japan Governor Ueda Kazuo and Japanese Prime Minister Kishida Fumio have discussed the foreign exchange rate. The meeting comes as the yen continues to depreciate to record levels against the dollar.

The two held talks at the prime minister's office in Tokyo on Tuesday.

Ueda told reporters after the meeting that he and Kishida exchanged views on the slipping exchange rate.

The BOJ governor said, generally speaking foreign exchange rates can potentially have a large impact on the economy and prices.

He also said that the Bank of Japan will closely monitor the yen's recent depreciation in managing policy.

The Japanese currency plunged to 160-yen range against the dollar on April 29. It was the first time in 34 years that the currency had traded at that level.

Then the yen rebounded sharply to the 154-yen level, and it surged again last Thursday. Those moves fueled speculation that Japanese authorities had intervened repeatedly.

Last month, Ueda said yes when a reporter asked whether the impact of the weaker yen on overall prices was within a range that can be ignored.

The market did not view his reply as a strong message on keeping the yen's depreciation in check, and the yen rapidly weakened after that.

Asked about this remark on Tuesday, Ueda said there is no change to that stance, but the central bank will carefully watch how the weak yen will affect the basic rate of price increases.