The yen sank to the weakest level since last trading at 100 per dollar four years ago as the Bank of Japan reiterated its stimulus program, driving investors into an array of higher-yielding assets.
Japan’s success in building an economy that supplies the world with everything from cars to electronics is now undermining its own efforts to keep the yen from rising at a time when few countries want a strong currency.
The only consensus on the dollar is that there’s no consensus.
The dollar rallied for a second week and touched an eight-week high as stronger-than-forecast economic reports boosts bets the Federal Reserve will reduce stimulus at its next meeting in December.
The dollar fell the most in 10 weeks against the euro after the Federal Reserve said it will keep interest rates at almost zero for a “considerable time” and cut the outlook for economic growth.
"The dollar has been performing very well in recent weeks on the back of stronger data."
- Robert Lynch on Aug 01, 2014