Tuesday saw the Japanese yen slip against the world’s reserve currency as the Bank of Japan put off open-ended asset purchases until one year from now, Bloomberg reports.
Amid expectations that policy makers would act immediately, the yen advanced at minimum 0.2 percent against all 16 of its top rival monetary units. Strong losses to the yen during the past month-plus prompted senior broker Kurt Pfafflin with Daniels Trading to say late last week that the monetary unit is “essentially doomed.”
“In order to overcome deflation early and achieve sustainable economic growth with price stability, the Government and the Bank of Japan will strengthen their policy coordination,” the central bank stated in a release on Tuesday.
Beginning next January, the Bank of Japan indicated it will acquire the yen equivalent to nearly $147 billion in assets. The yen has endured strong losses during the past several weeks during the early term of Prime Minister Shinzo Abe, who emphasized the practice in the weeks and days leading up to his election.
Policy makers with the central bank met expectations and doubled the inflation target to 2 percent, according to Reuters.
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