Skip to content

Yen Tumbles to Seven-Year Low as BOJ Diverges Further From Fed

  • BOJ offers to buy unlimited amount of bonds for three days
  • Yen falls to weakest level against greenback since August 2015
Video player cover image
BOJ Will Be Forced to Act on Falling Yen, Macquarie's Wizman Says
Updated on

The Japanese yen plunged by the most since March 2020 against the U.S. dollar as the Bank of Japan continued to ease monetary policy aggressively, diverging further from the Federal Reserve’s increasingly hawkish stance.

The yen fell as much as 2.5% to 125.09 against the greenback on Monday, the weakest since August 2015, before paring back some losses to trade near 123.85. The BOJ offered for the first time to buy an unlimited amount of 10-year government bonds over the next three days, capping yields amid a global debt selloff and eroding the currency’s appeal. The Fed raised interest rates earlier this month and signaled more tightening would follow to curb soaring inflation.