The Japanese Yen continues to depreciate, this time hitting a new 2-1/2 year low against the US Dollar and Euro.
The latest decline follows the recently elected Prime Minister Shinzo Abe’s comments that he will choose a new Bank of Japan governor who will implement stricter monetary stimulus measures to weaken the currency further.
Speculation over who the new Bank of Japan governor will be is the main reason for today’s movement of the Yen. So far this month the Yen has depreciated by 7.1% against the other currencies hitting its weakest level since June 2010 against the US Dollar.
Unemployment in the country rose to 4.2% in December an increase from 4.1% recorded in November. Household spending fell by 0.7%.
According to the Japanese Economy Minister Akira Amari, Prime minister Abe is narrowing his list of candidates to replace current BOJ Governor Masaaki Shirakawa, whose term is due to end in April. Under his leadership the Bank came under government pressure to double its inflation target to 2% and to implement an open ended monetary policy to devalue the currency in a bid to increase exports.
Potential candidate to be the next BOJ governor, Kikuo Iwata, a Gakushuin University economics professor, told lawmakers yesterday that deflation and the strong yen can be overcome with monetary policy alone.
The currency is set to make its 12th weekly decline against the Dollar due to the latest household spending data showed a decline, and the jobless rate increased.
These exchange rates were correct as of 14:30 pm
The Japanese Yen to Pound Sterling exchange rate is currently trading at 0.00687
The Japanese Yen to US Dollar exchange rate is currently trading at 0.01087
The Japanese Yen to Euro exchange rate is currently trading at 0.00797
The Japanese Yen to Australian Dollar exchange rate is currently trading at 0.01043