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Yen hits low on slow economic growth
Slow-moving economic growth in Japan has helped the yen trade at its lowest level against the dollar in 11 weeks.
This morning, the Japanese currency fell to 120.94 against the dollar and 163.60 against the euro.
Low trading followed the decision by the Bank of Japan (BoJ) to hold interest rates at 0.5 per cent, while a government report highlighted a slowing economy over the first quarter of the year.
Kengo Suzuki, currency strategist at Shinko Securities, told Bloomberg: "The report shows the economy isn't performing in line with the bullish scenario the BoJ has laid out.
"I originally expected a rate hike in August. Now the BoJ is likely to push this back to sometime between October and December."
This quarter, the yen has dropped 2.5 per cent against the US currency and three per cent against the quarter.
Richard Jerram, chief Japan economist at Macquarie Research, predicted that the BoJ would keep interest rates on hold for between three and six months.
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