Yen falls to four-year low on Japan stimulus

Japan's currency has fallen to its lowest level against the US dollar since May 2009, as the Bank of Japan (BoJ) shifts to a more radical monetary easing policy.

Last week the BoJ surprised the market when it unveiled plans to increase monthly purchases of Japanese government bonds from ¥4trn to ¥7trn, as the country aims to stave off deflation. The looser monetary policy sent the yen 3% lower against the dollar last Friday, amid fears the BoJ is attempting to debase its currency to spur growth. The yen continued its depreciation in trading today, falling 1.1% to 98.67 per dollar at 14.15, after earlier sliding to 99.01; its weakest level since May 2009. Analysts at Barclays argue the yen could weaken significantly over the next six months,...