The Yen has fallen for a third day against the US Dollar after Japanese Prime Minister Shinzo Abe formally nominated Haruhiko Kuroda to become the next governor of the Bank of the Japan. The move has increased expectations for further monetary stimulus over the course of 2013.
The Japanese currency is now on course to make a fifth monthly decline, its longest run of losses since August 2008. Abe also nominated BOJ Hiroshi Nakaso and Professor Kikuo Iwata as deputy governor candidates.
“Prime Minister Abe has been very vocal on what he wants the BOJ to do and Kuroda will push for that easing to support growth,” said Janu Chan, an economist at St. George Bank Ltd. in Sydney. “That’s what’s behind the yen weakness of recent months. All those expectations are embedded in the yen now.”
The current BOJ governor, Masaaki Shirakawa will step down on March 19th, a full three weeks before his term was due to end. Abe wants a more aggressive governor leading the bank as he seeks to enforce the currency monetary easing policy. Kuroda is viewed as part of the global “currency mafia” in Japan. During his years as Japan’s top financial diplomat, he often decried the Japanese yen’s rise against the U.S. dollar, saying it did not reflect the fundamentals of the economy.
Abe hopes that Kuroda will force the value of the Yen downwards in an attempt to boost Japanese exports and help support country’s manufacturing sector. So far this year the Yen has weakened by around 20% since last year.
Current JPY Exchange Rates
The Japanese Yen to Pound Sterling (JPY/GBP) exchange rate is trading at 0.0071
The Pound Sterling to Japanese Yen (GBP/ JPY) exchange rate is trading at 139.6428
The Japanese Yen to Euro (JPY/EUR) exchange rate is trading at 0.0082
The Euro to Japanese Yen (EUR/ JPY) exchange rate is trading at 120.7913
The Japanese Yen to US Dollar (JPY/USD) exchange rate is trading at 0.0108
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 92.0876
These exchange rates were correct as of 10:20 am GMT
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