The Japanese yen fell to its four-plus year low on Friday against the U.S. dollar after the government of the Pacific Rim nation released data indicating domestic investors further developed holdings of international bonds, according to Bloomberg.
The currency of the globe's third-largest economy slumped against all 16 of its top rival monetary units amid sentiment that the economic stimulus policies of Bank of Japan president Haruhiko Kuroda and Prime Minister Shinzo Abe are prompting investors to direct their resources outside the nation.
"Japanese investors buying foreign bonds means they are seeking higher yields abroad as yields in domestic bonds are too low," senior economist Hiroaki Muto with Sumitomo Mitsui Asset Management in Tokyo told Bloomberg on Friday. "That's a sign that Kuroda's monetary easing and Abenomics are working. This also signals further weakening in the yen."
This week has been challenging for the yen, which has lost about 2.5 percent of its value against the U.S. dollar. The yen's slump this week against the euro has been about 1.6 percent.
Reuters reports the dollar's gains against the yen were linked with the U.S. Labor Department releasing stronger than forecast labor market data on Thursday.
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