INTERVIEW: IMF Official Sees Weak Yen as "Positive" Overall

   By Adriana Reinecke
   Washington, April 22 (Jiji Press)--The yen's depreciation has had "positive" effects overall on the Japanese economy, an International Monetary Fund official said recently.
   Rupa Duttagupta, deputy director of the IMF's Asia Pacific Department, also discussed the Bank of Japan's monetary policy, stating that the IMF's baseline projection is for the bank's policy rates to go up "very gradually."
   The U.S. Federal Reserve's interest rate hike campaign has led to a sharp appreciation of the dollar against the yen. As hopes for early U.S. rate cuts continue to dwindle, the yen has tested its 34-year lows against the dollar, sparking speculation that Japan may intervene in the foreign exchange market to prop up its currency.
   In a recent interview, Duttagupta explained that, while a weak yen weighs on domestic consumption in Japan by dampening purchasing power, it also helps boost exports and the foreign income of internationally active Japanese companies and banks.

(2024/04/23-12:40)

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