Japan: Japanese yen depreciates sharply as Central Bank intervenes
March 5, 2012
By 5 March, the Japanese yen (JPY) traded at 81.4 per U.S. dollar (USD), weakening 6.4% compared with the same day the previous month. The decline contrasted the mild 1.0% gain recorded in January. The Japanese yen depreciated sharply after the Bank of Japan announced that it will set an inflation goal of 1.0% for the time being and boosted the asset-purchase program to JPY 65 trillion. Moreover, the yen also suffered from higher appetite for riskier assets. On an annual basis, the yen has strengthened 1.0%.