Dollar slips versus yen as Japan boosts stimulus

<p>The dollar has slipped in forex trading versus the yen as Japan boosts its asset purchasing programme. </p>

The dollar has slipped in forex trading versus the Japanese yen today (October 30th), as the world's third largest economy's central bank boosts its key stimulus measures.

In a bid to fight ongoing deflation and slowdown, the Bank of Japan has extended its programme of asset purchases, under which it buys bonds to ensure long-term borrowing costs are kept down.

The central bank has increased this action by 11 trillion yen (£86 billion) and will also offer financial institutions unlimited loans to encourage lending and boost domestic consumption.

However, analysts think the bank may need to take more action to spur growth.

The country's strong currency has hurt Japan's manufacturing sector, making their goods more expensive to export markets, while falling prices have damaged the economy.

At 10:55 GMT, the dollar depreciated by 0.4 per cent against the yen to $1 buying 79.444 yen.

Find out about the dollar and forex trading at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.