Forex rates are hard to manage: DPJ’s Maehara

JIJI, Kyodo

It will be hard for the incoming government to manage foreign exchange rates, departing economic and fiscal policy minister Seiji Maehara said Wednesday.

Japan is moving in “a good direction” as the yen’s rise has been corrected and stock prices have advanced, Maehara told a news conference.

But it would be “difficult” to keep yen rates at levels the incoming government thinks are appropriate, Maehara added.

Japan should focus on efforts to enhance its economic growth potential instead of expanding fiscal spending through public works growth, he said. “It would be totally meaningless if supereasy monetary conditions are not used to improve the strength of the real economy,” he said.

The dollar climbed above the ¥85 line for the first time in 20 months in Tokyo trading Wednesday morning on expectation that new Prime Minister Shinzo Abe will push the Bank of Japan to further ease monetary policy.