Yen Remains Volatile After Boj Presses On With Monetary Easing Program
The yen remains volatile against the dollar in Tokyo after the Bank of Japan said it would keep its monetary easing policy in place.
The Japanese currency was traded between the 132 and 133 levels on Friday morning. It weakened to the 134 level at one point after the BOJ announced its decision.
The slide is a result of the widening gap in interest rates between Japan and the US. That disparity is prompting investors to dump yen-denominated assets in favor of higher yields on the greenback.
Indications by the Federal Reserve that it will use rate hikes to curb inflation is driving speculation that the gap will grow.
On the Tokyo Stock Exchange, the benchmark index finished Friday below the 26,000 mark for the first time in more than a month.
Investors are worried that monetary tightening by central banks in the US and Europe could put a brake on the recovery of the global economy.
The Nikkei Average ended at 25,963, down 468 points, or nearly 1.8 percent, from Thursday's close. Investors unloaded shares across a wide range of sectors, with the index briefly dropping more than 700 points.