The central bank of Japan was disappointed as its plan brought nearly no reaction. The yen traded just below 85. The dollar fell to a 15-year low against the yen Tuesday, plunging at one point to 83.52
The steady rise in the value of the yen in recent weeks has unnerved Japanese authorities who see the trend as a threat to Japanese exports and ultimately to the country’s recovery. The gain in the yen was also supported by the absence of new measures from the Bank of Japan, whose policymakers convened Tuesday, to stem the upward momentum.
The bank kept its key interest rate unchanged at 0.1 percent to continue nurturing a moderate recovery and signalled stronger concern about the impact of a surging yen.
“We are aware that Japanese exporters have been significantly affected by the yen’s strength,” Bank of Japan governor Masaaki Shirakawa told a press conference. “I do not think it is appropriate to judge the success or failure of the measures in a short period of time,” he said.