Tuesday saw the Japanese yen advance against the U.S. dollar for a second-straight trading session, pushing higher from its lowest level since July 2010, Bloomberg reports.
Reuters reports the monetary unit of the globe's third-largest economy moved higher despite Finance Minister Taro Aso stating the country he serves will purchase debt from the euro zone's permanent bailout fund, the European Stability Mechanism.
Policy makers with the Bank of Japan are slated to meet for two days on January 21 and 22. The most recent BOJ meeting, which was in December, saw the body enhance stimulus but back off temptations to boost the inflation goal from 1 percent.
"Yen weakness is likely to remain intact until the next BOJ meeting," foreign exchange strategist Yuki Sakasai with Barclays Plc in New York told Bloomberg on Monday. "Investors may be looking to buy the dollar-yen on dips."
Strategists said the primary reason why the commitment to purchase euro zone debt had little impact on the value of the yen is Japan bought the debt with its foreign reserves.
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