The Japanese yen on Monday endured losses in the aftermath of the Pacific Rim country prevailing in its bid to serve as host nation of the 2020 Olympic Games, Bloomberg reports.
The fiscal and monetary stimulus policies implemented by Prime Minister Shinzo Abe since being elected in December 2012 increased in status as a result of the decision. The yen's losses thus far this year against the world's reserve currency have climbed as high as about 13 percent against the U.S. dollar.
"Victory for Tokyo's Olympics bid is seen as helping to renew faith in Abe and his efforts to reflate the economy," currency strategist Mike Jones with Bank of New Zealand Ltd. in Wellington told the media outlet on Monday. "That's weighing on the yen."
The yen's losses against the U.S. dollar were pushing as high as 0.3 percent, tugging down the monetary unit to its lowest value since July 25 against Its cross-Pacific rival, according to Bloomberg.
The Japanese yen also slumped against the common currency of the European Union as the trade week kicked off on Monday, Reuters reports.
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