Yen Weakens Beyond 99 per Dollar

Exchange rate hits lowest level since May 2009 on concerns about the Bank of Japan’s stimulus measures.

The yen weakened beyond 99 per dollar for the first time since May 2009 on speculation Bank of Japan measures to fight deflation announced last week will further debase the currency.

The yen dropped against all its 16 major counterparts for a third day after BOJ officials said last week they will boost monthly bond purchases to 7.5 trillion yen ($80 billion), exceeding the 5.2 trillion yen forecast by economists surveyed by Bloomberg News. The dollar declined for a fourth day versus the euro before Federal Reserve Chairman Ben S. Bernanke speaks today. South Korea’s won slid to an eight-month low as military tensions on the Korean peninsula escalated.

Central Bank

The BOJ on April 4 suspended a cap on some bond holdings and dropped a limit on debt maturities. Policy makers set a two- year horizon for their goal of 2 percent inflation. The central bank’s next policy meeting is on April 26.

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