The Japanese yen dropped toward its four-year trough against the common currency of the European Union on Friday in the aftermath of the U.S. Federal Reserve opting to keep stimulus measures unchanged earlier this week, Bloomberg reports.
The monetary unit of the Pacific Rim nation fell against all of its major counterparts after a policy maker with the central bank of Japan said anticipations are high that pressure will mount to continue its monetary easing policies. The yen also was pinched during the Thursday trade session, when it dropped to its three-month low against the Australian dollar.
"Yesterday's initial reaction was to clear out long dollar-yen positions, now we're returning to the typical risk-on scenario," foreign-exchange strategist Michael Sneyd with BNP Paribas SA in London told Bloomberg on Friday. "The currencies that correspond to carry trades, the Aussie, Kiwi are doing well, while the yen is doing badly."
The yen lost 1.6 percent of its value against the 17-nation currency after touching its lowest value since November 2009. The yen's poor performance against the world's reserve currency climbed to 1.5 percent losses.
The yen also plunged against the Swiss franc on Friday, diving to its lowest value since 1990, according to Reuters.
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