Yen Falls to 6-Year Low on Signs Fed, BOJ Policies to Diverge
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The yen fell to the lowest level versus the dollar in almost six years on speculation faster economic expansion in the U.S. will convince the Federal Reserve to raise borrowing costs, while the Bank of Japan maintains monthly bond buying to keep rates low to bolster growth.
Japan’s currency was set to complete a four-week loss as demand for the greenback climbed after data showed U.S. service industries expanded in August at the fastest pace in nine years. The BOJ kept its record stimulus unchanged yesterday. The euro dropped to the lowest in almost 14 months after the European Central Bank unexpectedly cut its main refinancing rate to a record 0.05 percent and introduced additional stimulus.