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Yen Tumbles on Report Abe Will Announce $254 Billion Stimulus Package

  • Currency retraces Tuesday’s gains, weakens as much as 1.8%
  • Fed seen laying groundwork for 2016 rate hike at its meeting
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Jullier: Market Reaction to Abe's Fiscal Plan is Logical

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The yen fell by the most in almost two weeks after Japanese Prime Minister Shinzo Abe surprised markets with a fiscal-stimulus package exceeding 28 trillion yen ($265 billion) as he seeks to jump-start the country’s floundering economy.

Japan’s currency weakened against all of its 31 major counterparts. Abe said the program will include 13 trillion yen in “fiscal measures,” according to excerpts of a speech broadcast on NHK public television. The yen’s slide spurred broad gains for the dollar as investors awaited the Federal Reserve’s latest assessment of the U.S. economy at its meeting ending Wednesday.