Bank of Japan Governor Haruhiko Kuroda said interest rate increases by the Federal Reserve won’t necessarily cause the yen to weaken, saying various factors affect the currency market. In a sequence of remarks Thursday that appeared to trigger a strengthening of the yen, Kuroda also said the BOJ would handle any eventual exit path well, though it wouldn’t be easy. Fed rate hikes “may affect the value of US government bonds and stock prices,” Kuroda said in response to questions in parliament. “So I think it’s not necessarily the case that Japan’s capital will flow into the US continuously, causing the yen to weaken.” ... (full story)