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Weak yen vexes Team Kishida as inflation looms over election

Currency barely budges from 20-year low after comments from BOJ's Kuroda

Prime Minister Fumio Kishida has cited steep price increases for imports as a main cause of accelerating inflation while noting that "exchange rates have had an impact."   © Kyodo

TOKYO -- The yen continued its slide Monday despite top Japanese officials voicing rare warnings about the drawbacks of a sharp depreciation, as Prime Minister Fumio Kishida's government fears that inflation could turn voters sour.

Rising prices for food and other necessities have hit consumers as this summer's upper house parliamentary election nears. A weak yen amplifies the problem by making imports costlier, and the Japanese currency slumped to a new 20-year low against the dollar on Monday. Inflation is expected to exceed 2% this month and looks set to accelerate further amid the recent commodities rally.

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