The yen dropped to a new 20-year low as it fell for the 13th consecutive day, heightening the stakes for the Bank of Japan on whether to maintain its ultra-loose monetary policy stance. JPYUSD down -1.16%, Nikkei 225 up 0.69%
- The plunge in the yen ¥128 against the US dollar emerged as Tokyo Research Survey found that nearly 40% of the companies determined that yen weakness had a negative impact on their business.
- Only 29 percent took the same view in December when the yen stood at a record low of ¥113 against the dollar.
- The highest percentage of those hurt by the weaker yen were in the clothing and textile industries, followed by food and furniture equipment producers.
- Tadashi Yanai, chief executive of Asia’s largest clothing retailer Fast Retailing stated that the weak yen had no merit, noting that it only brought disadvantages to the Japanese economy.
- Forex traders in Tokyo stated there was a probability that bilateral talks between the Japanese and US could help to calm markets.