The yen slid to a four-year low against its U.S. counterpart, extending its longest streak of monthly losses in more than a decade, after the Bank of Japan’s stimulus policies were unopposed at a Group of 20 meeting.
Japan’s currency dropped at least 0.2 percent against all of its 16 major counterparts after BOJ Governor Haruhiko Kuroda emerged from the talks saying he was emboldened to press ahead with the campaign to defeat deflation. The central bank meets this week after pledging April 4 to double the monetary base in two years. Europe’s 17-nation currency halted last week’s decline against the greenback before Giorgio Napolitano is sworn in to a second term as Italian president.
“There’s nothing really in our view to stop the yen from continuing to weaken here,” said Ray Attrill, Sydney based global co-head of currency strategy at National Australia Bank Ltd. “We are having a little bit of tug-of-war, I think, up close to 100. I’ve no doubt we’ll go through it at some point.”
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