Kuroda Ally Says Weak Yen Shouldn’t Stop Stimulus If Needed

Concern about weakening the yen shouldn’t prevent the Bank of Japan from easing monetary policy further if necessary, said Masahiro Kawai, a university professor who has collaborated on research with Governor Haruhiko Kuroda.

“I have no doubt the yen will fall further and it wouldn’t cause problems because companies and households will adjust as long as the rate reflects economic fundamentals,” Kawai said in an interview on Thursday in Tokyo. The currency at its current level is beneficial for the economy, he said, predicting that it could fall well below 120 against the dollar.