ISTANBUL

The rapid and one-sided depreciation of the yen is negative for Japan's economy, the head of the country's central bank said on Wednesday. 

According to Kyodo News, Bank of Japan Governor Haruhiko Kuroda made a statement in parliament after the currency hit its lowest value against the US dollar in 32 years.

He said business planning had become difficult due to the Japanese currency's sharp weakening and that the government's intervention to curb further depreciation was appropriate.

"Currencies should move in a stable manner, reflecting economic and financial fundamentals," Kuroda stressed.

"The recent depreciation of the yen is rapid and one-sided. This type of yen weakness makes it difficult for companies to draw up business plans and raises uncertainty so it is negative for the economy and unfavorable," he added.

The bank has long been insisting on ultra-loose monetary policy despite hawkish interest rate hikes by other major central banks since last December.

To protect the yen's value against the US dollar, the bank has intervened in the market a couple of times but the parity continues to drop, nearing the level of 150.