Yen advances despite further Japanese intervention

The yen is higher against major currencies today despite the Japanese Government unveiling a ¥920bn stimulus package and the BoJ extending an additional ¥10trn of lending to banks.

The moves, which have been mooted for weeks, are aimed at boosting the deflationary Japanese economy and to curb the strength of the yen.

However, the dollar has fallen 0.69% to ¥84.78 - while sterling has declined 0.6% to ¥131.63. The euro has suffered the sharpest fall against the yen, down almost 0.9% to ¥107.71.

Japanese yen has been in high demand recently on signs of weakness in the global economy, hitting a 15-year high against the dollar last week. A rising yen has severely hit Japanese exporters, such as Sony and Toyota.

The intervention boosted the Japanese stock market however, with the Nikkei 225 index advancing 158.20 points, or 1.76%, to 9149.26.