The Japanese yen is continuing to soar in Asia, rising to its strongest level against the US dollar since October 2014.
At 12.45pm in Tokyo, the USD/JPY is trading at 109.1, its lowest level since October 31, 2014 — the day the Bank of Japan (BOJ) stunned financial markets by increasing the size of its quantitative and qualitative easing (QQE) program.
From the high of 121.68 struck on January 29 this year — the day the BOJ adopted a negative interest rate policy — the USD/JPY has now fallen by 10.36%.
The stronger yen continues to weigh on Japanese stocks, with the benchmark Nikkei 225 index currently off 0.22% midway through Thursday’s trading session. In early trade it had been up as much as 1%.
From February 1, the index has lost over 12%.
Earlier on Thursday Japan’s chief cabinet secretary Yoshihide Suga told media that excessive volatility and disorderly currency moves would have a bad impact on the Japanese economy.
He stated that recent moves were one-sided and would take appropriate steps “as needed”.