Friday saw the Japanese yen climb against the world's reserve currency but the monetary unit of the Pacific Rim nation was still set to mark a second consecutive week of losses against the U.S. dollar, Reuters reports.
The currency is projected to remain weak for the next several months in the aftermath of the bank of Japan opting earlier this month to double the size of its economy-spurring measure with more purchases of Japanese government bonds.
"With the BoJ now a major buyer of JGBs, expectations are that Japanese investors in JGB's – mainly banks, insurance companies and pension funds – will start to allocate part of their money to foreign assets," fund manager Jaco Rouw with ING Investment Management told Reuters on Friday. "This might partly be on an unhedged basis if the BoJ successfully creates expectations of a weaker yen. As almost all yen weakness so far has been driven by the international financial community, this Japanese flow should be the next leg of further yen depreciation."
Central bank governor Haruhiko Kuroda said he is working toward achieving a 2 percent inflation target.
The Japanese international affairs vice minister said the country's trade partners will understand that Japan is not trying to thin down the yen's value, according to Bloomberg.
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