Yen weakens to 20yr low to dollar, 7yr trough vs euro
Divergence of monetary policy spur yen weakening
Kuroda retracts remark on households39; acceptance of price hikes

TOKYO, June 8 Reuters Japanese policymakers held fast to their usual line on yen weakness on Wednesday, stating that rapid moves were undesirable, butconfounded expectations they may escalate warnings about the sliding currency as it fell to fresh 20year lows.

Various macro models suggest the weak yen is a plus to the economy, as long as its moves are stable, Bank of Japan Governor Haruhiko Kuroda told parliament on Wednesday, reiterating his stance.

Finance Minister Shunichi Suzuki said in parliament that the weak yen has both positives and negatives for the economy, although it could be negative if wages remain stagnant, which would mean potential harm to households because of higher costs of living.

The yen weakened beyond 133 to the dollar on Wednesday and slumped to a sevenyear trough below 143 against the euro , with an expected rate move by the European Central Bank likely to leave Japan as the sole major central bank sticking to an ultraeasy monetary policy in the face of surging inflation.

Speculation in financial markets has lingered that Japan may yen weakness, which is pushing up import prices and households39; cost of living, by intervening to sell dollars a switch from its traditional stance of trying to weaken the yen.

Japan has not intervened in the currency markets since it…