The yen weakened against the dollar and is moving towards its largest weekly decline since 1999, as investors anticipate the specific details of Japanese Prime Minister Shinzo Abe’s re-energized stimulus plans after his upper house election win.
The yen slid versus the majority of its 16 major counterparts, plummeting following Ben S. Bernanke, ex-chairman of the Fed Reserve was reported to have raised the concept of Japan offering perpetual bonds. However, Bank of Japan officials denied a report that they are considering launching the helicopter money policy in which the central bank will directly finance government spending.
The yen fell by 0.8% to 105.35 yen per dollar as of 5 p.m. in New York, pushing its decline since the end of last week to 4.6%. It weakened earlier to 105.94, the weakest it has been since June 23 after the Brexit vote. The yen weakened against the euro for the fourth consecutive day, depreciating by 1.1% to 117.14 yen.
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