The yen dropped against all 16 of its major peers as traders bet Bank of Japan (8301) Governor Haruhiko Kuroda will add to stimulus measures as early as next week in a bid to end 15 years of deflation.
Japan’s currency slid for a second day as Kuroda prepared to appear before parliament tomorrow, after telling lawmakers yesterday he aims to achieve 2 percent annual inflation in two years.
“Expectations have been built up incredibly high,” Joseph Capurso, a Sydney-based foreign-exchange strategist at Commonwealth Bank of Australia (CBA), said in reference to the BOJ’s next policy gathering on April 3-4. “After the meeting, I think dollar-yen will fall because expectations are so high for some big bang approach.”
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