The yen dropped against the dollar after Japanese Finance Minister Taro Aso said policies that have driven the currency to a four-year low escaped criticism at the Group of 20 meeting in Washington.
The yen weakened versus all of its 16 most-traded counterparts before the Bank of Japan (8301) meets next week amid expectations Governor Haruhiko Kuroda will push ahead with expanding stimulus that helped weaken the yen 19 percent against the dollar in six months. The greenback extended a decline against Europe’s shared currency after weaker than expected U.S. manufacturing data boosted chances the Federal Reserve will keep expansionary policies in place longer.
“The Bank of Japan will gradually implement additional easing from here,” said Noriaki Murao, a New York-based managing director of the marketing group at the Bank of Tokyo- Mitsubishi UFJ Ltd., a unit of Japan’s largest listed financial group. “The trend for further yen weakening is still in place.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.