Wednesday saw the monetary unit of Japan bounce back from losses earlier in the day, which were prompted by the Bank of Japan indicating it will implement a strategy to spur the globe's third-largest economy, according to Reuters.
The yen fell to its lowest in one month against the dollar early on Wednesday once the Bank of Japan announced the stimulus measure, which will see the purchase of assets worth 10 trillion yen.
"The real test for dollar/yen is whether the current move can carry it above 80 yen," currency strategist Niels Christensen with Nordea in Copenhagen told Reuters. "I think it will run out of steam as you need very good numbers out of the U.S. and risk appetite to maintain pressure on the yen."
The country's economic recovery might be slowed as much as 180 days after the belabored global economic slowdown, Governor Masaaki Shirakawa with the Bank of Japan said.
The yen sunk to its lowest value against the U.S. dollar since the middle of last month after the central bank announcement, according to Bloomberg.
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