Efforts of Japan’s prime minister aimed at the national currency depreciation have yielded results. A survey of international observers shows that the yen fell to a five-year low. The yen has fallen against the U.S. dollar to its five-year low. Moreover, the yen has touched the record low against the European single currency. So, Japan’s currency has been weakening amid the news from the Bank of Japan where the unprecedented policy of the fiscal stimulus is being negotiated. Japan’s government and the team of top economists are going to carry on increasing the money supply at an accelerating annual pace. On the other hand, the Federal Reserve announced the gradual tapering of its quantitative easing program owing to the sustainable recovery of the former U.S. economic performance. In the meantime, unlike the yen, Japan’s benchmark index Nikkei 225 has been steadily taking off. So, it is gaining momentum. Recently, it has set a new record surpassing 16,000 points for the last six years. For reference, Japan’s national currency sank to 104.84 against the U.S. dollar thus having reached the lowest point since 2008. Besides, the yen dropped to 143.37 against the euro. Takahiro Sekido, an analyst from Bank of Tokyo-Mitsubishi UFJ Ltd, who had worked previously at the Bank of Japan said, “Dollar-yen could test 105 as economic data in the U.S. continue to improve.”
