Yen drops in Asia

On Wednesday, the Japanese yen headed south during Asia trade as minutes from the Bank of Japan June board gathering suggested that the impact of negative interest rates should be thoroughly assessed.

The currency pair USD/JPY was worth 101.19, showing a 0.31% rise.

Overnight, USD/JPY sank abruptly, dropping to almost one-year minimums, as Japan prime minister Shinzo Abe's cabinet officially approved an enormous stimulus package on Tuesday in its last-ditch effort to boost constantly low inflation.

Abe's bunch of economic stimulus measures was approved just a couple of days after Japan’s number one financial institution shocked financial markets by simply implementing relatively moderate easing measures at a closely-watched gathering the previous week.

The $274 billion stimulus appears to be one of the Japanese government's greatest economic tools since the Financial Crisis and comes amid surging market sentiment that the Japanese economy will require relying on fiscal, and not monetary policy to stave off deflation.

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