Yen scrapes 27-month low against greenback

Posted On: December 27, 2012

The monetary unit of Japan pushed past its lowest value in more than 24 months against the U.S. dollar on Thursday as anticipations swirled for the government of the Pacific Rim nation to move forward with intervention, according to Reuters.

The Bank of Japan is poised to implement more aggressive monetary stimulus measures and water down the strength of the yen. Prime Minister Shinzo Abe, who assumed power on Wednesday, has made it clear he intends to direct the central bank to intervene.

"The present yen weakness is related to the new government, which seems devoted to push through both fiscal and monetary policy changes and take direct measures to weaken the yen," currency strategist Richard Falkenhall with SEB in Stockholm told Bloomberg on Thursday. "Yen weakness could very well continue. We see the yen as extremely over-valued considering the weak fundamentals we see in Japan."

Thus far this year, the yen has lost roughly 10.5 percent of its value this year against the U.S. dollar.

Bloomberg reports the losses to the yen dragged it to its lowest value in 27 months against the world's reserve currency.
 

Category: Industry News

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