Yen Falls to a 27 month low versus US dollar

The Japanese yen has dipped to a 27-month low against the US dollar amid speculation that policymakers will take steps to weaken the currency.

It was trading close to 85.84 yen against the US dollar in early Asian trade, the lowest since September 2010.

Japan’s new Prime Minister Shinzo Abe has promised steps to weaken the yen to help revive Japan’s sluggish economy.

He has even suggested that Japan’s central bank should print “unlimited yen” to help stoke inflation.

Mr Abe has also called upon the central bank to boost its stimulus measures and undertake aggressive monetary easing to spur economic growth.

That includes setting an inflation target of 2% – double that of the Bank of Japan’s (BOJ) current target.

via BBC

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