TOKYO (Reuters) – Bank of Japan Governor Haruhiko Kuroda on Tuesday preached the benefits of a weak yen, saying it helps manufacturers by inflating the value of profits they earn overseas.
Many Japanese manufacturers now produce goods they sell overseas locally, which means a weak yen may not boost export volume as much as it had in the past, Kuroda said.
“But there’s quite a lot of positives for Japan from a weak yen,” as companies earn huge profits overseas and would see their yen-denominated value rise from a lower yen, he told parliament.
(Reporting by Leika Kihara; Editing by Chang-Ran Kim)
