TOKYO (Reuters) -Japan’s new economic revitalisation minister, Minoru Kiuchi, said on Tuesday a weak yen may drive up import costs, but benefits the economy by boosting exporters’ profits and capital expenditure.
The government will deal with the pain from a weak yen by swiftly compiling a package of measures to cushion the blow to households from rising living costs, he told a press conference.
“A weak yen pushes up import costs and domestic prices, which in turn effectively weighs on the purchasing power of households and some companies,” Kiuchi said.
“But there are also merits such as the boost it gives to exporters’ profits and domestic investment,” he said, adding that it was important for exchange rates to move stably reflecting fundamentals.
(Reporting by Leika Kihara; Editing by Jacqueline Wong)
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