Bank of Japan Gov. Haruhiko Kuroda said Tuesday the central bank is closely watching the impact of the yen's sharp fall against other major currencies following the bank's additional monetary easing announced last month.
Speaking to a meeting of business leaders in Nagoya, Kuroda said the weakening currency could negatively affect the economy through rising prices of imports, which place a disproportionate burden on smaller companies and households, although positive aspects include improved earnings for firms operating internationally.
The impact "differs from one economic entity to another," he said. "We will carefully watch (the environment), including effects on the real economy."