Japanese Yen has fallen to its lowest level in more than two years against the US dollar on Monday as the country’s central bank continued to face pressure to boot economic stimulus. The national currency today touched 89.67 against the dollar, its lowest since mid-2010 and it was trading at around 120 against the Euro.
Japan's central bank, the Bank of Japan (BOJ) is facing pressure from the new government of Prime Minister Shinzo Abe to show to the market players that it is willing to take bold steps to ease monetary situation in the country. BOJ is expected to announce new plans to buy more government bonds and take aggressive actions to boost the economic growth in the country following the general elections in the country.
The government wants the BOJ to set a inflation target of 2 per cent and take steps to boost monetary situation in the country. The Japanese Yen is falling to its lowest level in months and analysts said that the fall is due to expectations for additional political pressure on the Bank of Japan after the recent general elections in the country.
The new government is expected to make BOJ act more aggressively to take steps to revive the economy. BoJ is also offering unlimited loans to banks in the country boost domestic demand and encourage lending. Government’s efforts are expected to put pressure on the national currency.
Tokyo markets were closed for a public holiday.