Currency Buzz: Japanese Yen Weakens To Fresh 6-Year Lows Against Dollar

24 Mar 2022 , 02:55 PM

The Japanese yen weakened further to hit fresh six-year lows against the US dollar as Japans central bank continues to maintain ultra-loose monetary policy to support economic recovery. BoJ monetary policy board voted 8-1 to maintain its monetary policy stimulus unchanged at -0.1 percent on current accounts that financial institutions maintain at the central bank. It also lifted its inflation forecast for the next fiscal year, citing a rise in commodity prices, minutes from the banks January 17-18 meeting revealed on Thursday. However, Bank of Japan (BOJ) board member Goushi Kataoka said a weak yen was positive for the economy, with the damage due to rising import costs likely very small. The Japanese yen slipped toward 121.69 per dollar, at the time of writing. The yen also took a hit from higher commodity prices given Japans position as a major energy and raw materials importer, adding pressure to the countrys expanding trade deficit.

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