The yen dropped to a 3 1/2-year low before the Bank of Japan releases minutes of its February meeting today amid speculation the central bank will boost monetary stimulus in coming months.
The currency weakened against all 16 major counterparts after Haruhiko Kuroda, the BOJ governor nominee, said yesterday the existing asset-purchase program isn’t enough to meet the central bank’s 2 percent inflation target. The dollar snapped a decline versus the euro before a report tomorrow that economists said will show retail sales improved in February.
“Dollar-yen has seen a big run up because of expectations for Bank of Japan easing,” said Imre Speizer, a strategist at Westpac Banking Corp. in Auckland. “The talk by officials is much more aggressive than it was previously. The market wants to see whether their actions will be much more aggressive too.”
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