2 Dec 2013
BoJ rumours add to pressure on the yen
FXstreet.com (London) - The yen has slumped on speculation that the central bank is considering an expansion of its already aggressive monetary policy.
The yen had already been driven down by strong manufacturing numbers coming out of China and the UK driving a risk rally out of yen.
Reports from Reuters suggest that the Bank of Japan is planning scenarios to go beyond its current USD70bn-a-month bond buying operation.
Beyond even more aggressive purchases of Japanese government bonds, stock market-linked funds may also be targeted.
Japanese authorities have been aggressively fighting deflationary pressures. BOJ Governor Haruhiko Kuroda stressed earlier today that Japan was on course to meet its inflation target of 2 percent in two years.
The yen had slid 0.45 percent against the dollar so far today to JPY102.9250.
The yen had already been driven down by strong manufacturing numbers coming out of China and the UK driving a risk rally out of yen.
Reports from Reuters suggest that the Bank of Japan is planning scenarios to go beyond its current USD70bn-a-month bond buying operation.
Beyond even more aggressive purchases of Japanese government bonds, stock market-linked funds may also be targeted.
Japanese authorities have been aggressively fighting deflationary pressures. BOJ Governor Haruhiko Kuroda stressed earlier today that Japan was on course to meet its inflation target of 2 percent in two years.
The yen had slid 0.45 percent against the dollar so far today to JPY102.9250.