The yen extended its three-week decline against the euro after Deputy Governor Kikuo Iwata reiterated the Bank of Japan’s commitment to unprecedented monetary easing.
The yen weakened against all its major peers on prospects the BOJ will say after a meeting this week it plans to continue buying more than 7 trillion yen ($71.7 billion) in bonds each month to end deflation. The euro traded near a two-year high against the dollar before the Federal Reserve begins a two-day meeting tomorrow, with economists predicting policy makers will refrain from tapering stimulus. The Australian and New Zealand dollars gained along with Asian shares.
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