The Japanese yen slumped on Monday against the shared currency of the European Union and the world's reserve currency after a global regulator indicated the gradual recovery of the world economy was clear, according to Bloomberg.
The yen fell against all 16 of its major rivals amid mounting speculation noting the Bank of Japan is preparing to implement increases to the size of its monetary stimulus measures. That upgrade could come as soon as next month.
"Our basic inclination is that dollar-yen is a buy on dips," currency strategist Sean Callow with Westpac Banking Corp. in Sydney told the news source on Monday, noting central bank monetary policy adjustments also are of issue. "We're in the camp that thinks more easing would be warranted."
The monetary unit of the Pacific Rim nation dropped roughly 0.3 percent against the euro, notching its largest losses in one week. The yen's losses against the U.S. dollar also totaled roughly 0.3 percent on Monday.
Deputy Governor Kikuo Iwata with the Bank of Japan said many dangers are in effect if inflation stays lower than 1 percent for longer time periods, according to Reuters.
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