The Japanese yen moderately lost value on Thursday following two days of gains after the central bank decided to persevere with asset purchases as a method of spurring the globe’s third-largest economy, Bloomberg reports.
Two consecutive days of gains for the monetary unit of the Pacific Rim nation halted as a prospective head of the Bank of Japan, Kazumasa Iwata, said that the currency is inclined to continue losing value.
Prime Minister Shinzo Abe, who has emphasized the practice of stimulus even before he was elected in December, is set to name three of the central bank’s highest personnel during the next 60 days, including a governor and two deputies.
“There is a lot of expectation about the Bank of Japan’s future,” senior fund manager Tomomi Yamashita with Shinkin Asset Management Co. in Tokyo told the news source on Thursday. “If the dovish Kazumasa Iwata takes the governor’s position, there is hope we’ll see more monetary easing.”
Further tugging on the yen is economic data stating the Japanese economy contracted 0.4 percent during the final quarter of 2012, according to The Associated Press.
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