Tuesday, 22 January 2013 20:12
LONDON: The yen's slide still has momentum after three months, with more investors emboldened to take bets against the currency as they position for a shift to a much looser fiscal and monetary policy in Tokyo.
Some expect the yen to fall to 100 per dollar in coming months, a level last seen in April 2009, from around 89 currently, as new Prime Minister Shinzo Abe's administration prepares to pump-prime the economy by issuing more bonds and pile pressure on the Bank of Japan to print more yen.
There is also speculation BOJ chief Masaaki Shirakawa, who retires in April, will be replaced by someone more amenable to Abe's wish for a much more aggressive monetary policy setting.
In addition to doubling the inflation target, a measure the BOJ adopted on Tuesday, the government has spoken of steps such adding employment to the central bank's mandate of price stability and possible changes to ...