The dollar hit a new 15-year low this week against the Japanese yen.
According to the Associated Press:
TOKYO — The dollar fell to a fresh 15-year-low against the yen in Tokyo on Thursday amid growing speculation that the U.S. Federal Reserve will ease monetary policy next month.
The U.S. currency was quoted at 81.07 yen briefly in late Thursday trading in Tokyo and was trading around 81.10 yen around 7:30 p.m. (1030 GMT; 6:30 a.m. EST).
Dollar-selling accelerated in Asia following Singapore's surprise move to widen the trading band of the Singapore dollar. The island nation's central bank, known as the Monetary Authority of Singapore, said Thursday that it will continue with a "modest and gradual" appreciation of the Singapore dollar.
The dollar's continuing decline against the yen — nearing a post-World War II low of 79.75 yen set in 1995 — led the Bank of Japan to act last month to stem the yen's rise by buying dollars — it's first intervention in the currency market in six years.
It appears that the Bank of Japan's intervention last month didn't do what was hoped. This, of course, makes Japanese exports more expensive and vacationers to Japan receive less yen per dollar when they exchange their currency. This does not help Japan's tourist industry. However, this does help Japanese tourists to America as they get more dollars when they exchange currencies.
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