CurrencyShares Japanese Yen Trust (NYSEArca: FXY) fell 1.6% in afternoon trading Thursday to a new 52-week low following a report the Bank of Japan is considering open-ended asset purchases to assist the economy.
The central bank will next week consider abandoning its 0.1% floor on short-term interest rates and pledging to buy assets until 2% inflation is foreseen, Reuters reports, citing identified sources familiar with the matter.
FXY, the yen currency ETF, has been under extreme pressure the past couple months and fallen to its lowest level since mid-2010.
The currency ETF has nosedived in the wake of new Japanese Prime Minister Shinzo Abe’s election victory amid rising speculation the Bank of Japan will announce further monetary easing. [Currency ETFs: Everyone Hates the Japanese Yen]
FXY is off about 13% the past three months.
Abe wants the central bank to boost its inflation target and has pledged to pressure the Bank of Japan to launch unlimited monetary easing to revive the economy and beat deflation. [Yen Currency ETF Drops to Fresh Low]
CurrencyShares Japanese Yen Trust