The Japanese Yen went into freefall against the US Dollar in Asian trading, hitting a fresh three and-a-half year low against the American currency following the Bank of Japan’s announcement that it would b implementing a massive new quantitative easing programme.
The Yen dropped by more than 3% against the ‘Greenback’ and plummeted to four year lows against the Australian and New Zealand Dollars after the Japanese Central Bank said that it will pump $1.4 trillion into the world’s third largest economy, with the plan to include raising purchases of Japanese bonds to an annual pace of around $530 billion.
The Yens downward momentum is likely to continue according to Motonari Ogawa, senior dealer at Barclays Bank in Tokyo.
“The BOJ has clearly changed,” he said “The bank is showing everyone that it is different from the one in the past… The market tide from yesterday will likely continue.”
The new easing scheme could create criticism from other nations with concerns that a currency war could still occur coming to the forefront. Concerns over inflation are already growing in other Asian economies such as South Korea, Hong Kong and China, a nation that the Japanese are having a turbulent political relationship with currently.
“Emerging economies will continue to be annoyed by monetary easing by advanced economies in terms of the money flowing in and inflation concerns,” said Masahiko Ejiri, senior fund manager of international equity investment at Mizuho Asset Management. “Concerns over inflation are certainly increasing.”
Current JPY Exchange Rates
The Japanese Yen to Pound Sterling (JPY/GBP) exchange rate is trading at 0.0068
The Pound Sterling to Japanese Yen (GBP/ JPY) exchange rate is trading at 146.4242
The Japanese Yen to Euro (JPY/EUR) exchange rate is trading at 0.0080
The Euro to Japanese Yen (EUR/ JPY) exchange rate is trading at 124.3146
The Japanese Yen to US Dollar (JPY/USD) exchange rate is trading at 0.0103
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 96.3086
These exchange rates were correct as of 09:40 am
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