Yen loses further

AFP, TOKYO: The yen sank again yesterday, extending losses after the Bank of Japan unveiled shock stimulus last week, while emerging currencies took a hit as weak China manufacturing figures stirred worries about the world's number two economy.
Japan's central bank on Friday announced it would adopt a negative interest rate policy, meaning it would effectively start charging commercial lenders to park their cash with it.
The move -- intended to ramp up lending in order to kickstart the economy and fend off deflation -- spurred a rally across world markets and sent the yen tumbling.
"The BoJ decision will have a lasting negative impact on yen because speculative positioning was the wrong way," Sean Callow, a Sydney-based foreign-exchange strategist at Westpac Banking, told Bloomberg News.
He added that expectations that it would make even more cuts in the coming months would weigh on Japan's currency.
In Tokyo, the dollar advanced to 121.27 yen from 121.12 yen Friday in New York. The greenback was trading around 118.60 yen on Friday before the announcement.
The euro strengthened to 131.51 yen from 131.19 yen in US trade, while it also advanced to $1.0844 from $1.0831.

Yen loses further

AFP, TOKYO: The yen sank again yesterday, extending losses after the Bank of Japan unveiled shock stimulus last week, while emerging currencies took a hit as weak China manufacturing figures stirred worries about the worlds number two economy. Japans central bank on Friday announced it would adopt a negative interest rate policy, meaning it would effectively start charging commercial lenders to park their cash with it. The move -- intended to ramp up lending in order to kickstart the economy and fend off deflation -- spurred a rally across world markets and sent the yen tumbling. The BoJ decision will have a lasting negative impact on yen because speculative positioning was the wrong way, Sean Callow, a Sydney-based foreign-exchange strategist at Westpac Banking, told Bloomberg News. He added that expectations that it would make even more cuts in the coming months would weigh on Japans currency. In Tokyo, the dollar advanced to 121.27 yen from 121.12 yen Friday in New York. The greenback was trading around 118.60 yen on Friday before the announcement. The euro strengthened to 131.51 yen from 131.19 yen in US trade, while it also advanced to $1.0844 from $1.0831.