Bank of Japan Weakens Yen

The Bank of Japan took action today that slightly improved the U.S. dollar's exchange rate against the yen.

From Japan Today:

TOKYO — The yen weakened against major currencies in Asian trade on Tuesday afternoon following the Bank of Japan’s surprise decision to further ease monetary policy.

The unit softened to 102.55 against the euro, compared with 102.34 late Monday in New York, while it also weakened to 77.91 against the dollar, from 77.58.

The central bank on Tuesday increased its asset purchase program by 10 trillion yen ($130 billion) to about 65 trillion yen, as it looks to put an end to the deflation that has wracked the economy for years.

Additional easing by a central bank increases the supply of money in the economy, weakening the currency.

Weakening the yen further would make Japan more attractive to would-be tourists. They would gain more purchasing power as they'd be able to buy more yen.

To read the full story, go here.