The Japanese yen on Tuesday lost value against the world's reserve currency after commentary by U.S. Federal Reserve chief Janet Yellen noted the importance of relaxed monetary policy, according to Reuters.
The currency of the Pacific Rim nation also lost value after the country kicked off sales tax increases as April began. The Bank of Japan is likely to continue driving forward with monetary easing that Shinzo Abe began his term as prime minister in December 2012.
"Yellen's comments appeared to be more dovish than what she had said earlier … so the market does seem to be in a risk-positive mode," FX strategist Divya Devesh with Standard Chartered Bank in Singapore told Reuters wire service on Tuesday. "So we have seen the likes of commodities currencies rallying."
The yen also lost value against the New Zealand dollar on Tuesday after having marked an advance of 3.6 percent against its rival during the first quarter of the year.
Five of Japan's bigger banks are poised to provide the yen equal to $64 million in loans as part of a drive to establish a solar power station in Northern Japan, according to Bloomberg.
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