25 Feb 2012

Yen down

11:02 am on 25 February 2012

The Japanese yen fell on Friday to its lowest level against the US dollar in seven months.

Part of the reason for the fall was a surprise increase in stimulus measures by the Bank of Japan on 14 February.

The yen has fallen by 3.7% against the greenback since then.

The BBC reports a strong yen has hurt profit outlooks for Japanese manufacturers, with some focussing on overseas production. Others went on buying sprees overseas.

The dollar stood at 80.30 yen on Thursday, having risen to 80.406 overnight - its highest since July.

The Bank of Japan expanded its asset purchase programme by 10 trillion yen ($US130 billion) in an effort to boost growth.

The BOJ also left the cost of borrowing unchanged at between zero and 0.1%.