(Bloomberg) -- In a rare explicit coupling of policy and the yen, Governor Haruhiko Kuroda said the Bank of Japan would have to consider additional stimulus if the exchange rate affected Japan's inflation and economy.
He was responding to a lawmaker's question about the BOJ's options if the yen rose further. The yen fell afterward, trading at 110.70 versus the dollar at 1:29 p.m. in Tokyo.
Former BOJ officials have warned in recent weeks of more yen strength, saying there would be little the BOJ could do about it.
Speaking to parliament on Tuesday, Kuroda said the BOJ's options included lowering bond yields and increasing asset purchases. He told lawmakers that currency manipulation isn't a goal of BOJ policy, but Japan's trading partners might not be convinced if the BOJ does act to offset a stronger yen.
--With assistance from Yuko Takeo and Toru Fujioka.
To contact the reporter on this story: Henry Hoenig in Tokyo at hhoenig@bloomberg.net
To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net, Paul Jackson
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