The US dollar hit a record low against the yen yet again today, following a series of record lows since last week.
USDJPY plunged to the all-time low of 75.65 as the New York trading session began, marking a 0.8 percent decline just today.
Japanese authorities have yet to intervene in the currency markets despite warning by Japanese Finance Minister Azumi.
Japanese officials are worried though about excessive yen strength which is affecting Japanese exporters. In fact in a policy meeting today, the Bank of Japan decided to ease monetary policy by purchasing more bonds.
In an effort to cap yen strength the Bank of Japan launches its second monetary stimulus in only three months by topping up its asset buying program by 5 trillion yen to 20 trillion yen ($263 billion). Meanwhile, the central bank kept interest rates unchanged at near zero percent.
In its monetary policy statement the bank gave a dim outlook on growth and cited various risks to the economy.
BOJ Governor Masaaki Shirakawa said that
“Current yen rises are having a big negative impact on Japanese corporate sentiment and exports.”
He added that “Global economic uncertainty, including Europe’s debt problem, remains very high, prompting global investors to seek safe haven assets.”