The dollar may extend declines toward a record against the yen after sliding to a 15-year low as the Federal Reserve said it would maintain bond holdings, Barclays Bank Plc and JPMorgan Chase & Co. said.
Masafumi Yamamoto , chief currency strategist at Barclays Plc in Tokyo, comments on the impact on the yen of China’s announcement that it will allow more currency flexibility. The statement signals an end to the yuan’s two- year-old peg to the dollar a week before a Group of 20 summit.
The Bank of Japan expanded its asset-purchase program for the third time in four months, and will reconsider its objectives for inflation as incoming Prime Minister Shinzo Abe urges more action to end price declines.
Bank of Japan Governor Masaaki Shirakawa, who set the nation’s first inflation goal six months ago to halt a decade-long struggle with deflation, has failed to produce the weaker currency craved by exporters.