Yen drops as BoJ announces stimulus plans

Published: 10 Apr at 9 AM Tags: Euro, Dollar,

The yen is hovering close to a four-year low against the US dollar following last week’s announcement by the Bank of Japan that it will be introducing a campaign of monetary expansion. Although the dollar is currently holding steady at 99 yen, many analysts are expecting the US currency to break the 100 yen mark later this week.

A surge in Chinese imports has seen the Aussie dollar gain 0.3 per cent against its US counterpart to end at $1.0518. A 14.1 per cent increase imports from Australia’s biggest trading partner has exceeded the country’s exports leading to a slight trade deficit.

The euro has managed to remain steady against both the dollar and yen. Following the announcement by the BoJ the single currency gained four per cent, but has since dropped 0.1 per cent to end at 129.53.

Following a high of $1.3100 on Tuesday the euro has now settled back to $1.3087. The Aussie has settled back against the yen after recent sharp gains and is currently buying 104.03 yen.

According to the Reserve Bank of Australia there are currently no plans to intervene and weaken the strong dollar although Christopher Gent, the central bank’s assistant-governor, said that if it becomes necessary then there is room for an interest rate cut.