Azerbaijan, Baku, March. 14 / Trend /
The yen fell against the dollar, erasing its earlier advance to a four-month high, after the Bank of Japan pumped record funds into an economy reeling from the nation's strongest earthquake, Bloomberg reported.
The yen declined versus 12 of its 16 major counterparts as the central bank said it will add 15 trillion yen ($183 billion) to the financial system and increase its asset-purchase program. The euro rose for a second day after European leaders agreed to widen the scope of a rescue fund aimed at resolving the sovereign-debt crisis and cut the cost of loans to Greece.
"The BOJ is providing ample liquidity," said Koji Fukaya, chief currency strategist at Credit Suisse Group AG in Tokyo. "The disaster may slow down the entire economy in Japan, and the bank will have to keep its monetary policy easing. That's definitely yen-negative."
The yen fell to 82.09 per dollar as of 3:02 p.m. in Tokyo from 81.84 in New York last week after earlier touching 80.62, the strongest since Nov. 9. It declined 0.5 percent to 114.35 per euro. Europe's common currency climbed 0.2 percent to $1.3930 from last week in New York.
The emergency measure represents the Japanese central bank's first same-day repurchase operations since May when it added funds to help stabilize markets amid Greece's debt crisis.