Japanese yen reaches its lowest level since 2008 against US dollar following stimulus plan

The Japanese yen has reached its lowest level since 2008 against the US dollar after the central bank began the latest round of its stimulus programme.

The yen fell as low as 98.85 against the dollar, before rebounding slightly.

Investors said the Bank of Japan’s plan to buy assets worth trillions of yen, which has government backing, would continue to weaken the currency.

As a result, the yen may break through the 100 mark against the dollar as early as this week.

The Japanese yen has reached its lowest level since 2008 against the US dollar after the central bank began the latest round of its stimulus programme

“This has really shaken up many people’s attitudes toward the Bank of Japan and the new government,” said Andrew Wilkinson, chief economic strategist at Miller Tabak and Co in New York.

“It feels like it’s gathered a whole new momentum behind it, as the doubters have joined the bandwagon and it’s becoming a self-fulfilling prophecy.”

Last week, the BOJ said it would double the supply of the currency in the market.

The central bank added that it would be much more aggressive in pursuing a 2% inflation target to boost growth.

A weak yen helps Japanese exporters keep their products competitive, as well as boosting profits earned overseas.

On Monday, exporters helped push the main Nikkei 225 stock index 3.1% higher, before the gains were pared back in later trading.

IT1UNeGWgEc
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago