The yen tumbled to its lowest level against the dollar in twenty months on Wednesday after Japanese Prime Minister Shinzo Abe was sworn in. Abe reiterated his push for “bold monetary easing in a speech in Tokyo today .
“With the strength of my entire cabinet, I will implement bold monetary policy, flexible fiscal policy and a growth strategy that encourages private investment, and with these three policy pillars, achieve results,” Abe told reporters in a press conference.
He also added that he would step up Japan’s alliance with the United States.
Accelerating the yen’s decline was the release of the Bank of Japan policy meeting minutes from the November meeting which showed that there was talk of the central bank conducting open-ended asset purchases. This operation usually tends to weaken the currency.
The yen slid again most of its major peers, and against the dollar it depreciated 0.7 percent to 85.46 yen, for the first time since April 2011. It depreciated 0.9 percent to 112.70 per euro, reaching the weakest level since August 2011.