TOKYO (Reuters) - The yen is fairly valued around current levels, a key economic adviser to Prime Minister Shinzo Abe said on Tuesday, a day after comments he made were taken to mean the yen was too weak.
Koichi Hamada, an emeritus professor of economics at Yale University, also told Reuters he was not suggesting the Bank of Japan ease policy at its next meeting this month, in contrast to the recent views of another Abe adviser.
"120 yen per dollar is acceptable," Hamada said in an interview.
He was quoted on Monday as saying a 105 yen rate was acceptable, but sought on Tuesday to clarify that he had been referring to the purchasing power parity-implied rate, which is around 101 yen, not the spot market rate.
"If the PPP-implied rate is at 105 yen and the yen weakens to 125 yen or to 130 yen, then such a gap may invite speculators," Hamada said.
On monetary policy, Hamada remained open to further easing, but did not see this as a pressing issue.
"I would not oppose further easing on April 30, because inflation won't be generated even if the central bank eases again," he said. "But I would not on my own oppose the BOJ adopting monetary easing for now."
Kozo Yamamoto, an Abe adviser and expert on monetary policy in the premier's party, told Reuters on April 1 that the BOJ must expand its asset purchases on April 30, given signs of slowdown in the economy and prices.
The central bank maintained its massive stimulus program last week and brushed aside speculation of near-term additional easing, even as inflation grinds to a halt far below the bank's targeted 2 percent.
(Reporting by Kaori Kaneko and Sumio Ito; Editing by Clarence Fernandez)