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.

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