The yen began to show a more clear decline pattern in the Asian session this morning after successfully maintaining strengthening for 5 consecutive days against the US dollar before.
Last week, the Bank of Japan (BOJ) raised interest rates to 0.25% and announced plans to reduce government bond purchases.
The monetary policy tightening measures by the BOJ have supported the Yen to strengthen in the market.
However, the actions taken by the central bank are seen to have a negative impact on the financial market in Japan resulting in giant firms and major banks facing problems.
Investors began to remove their investments to avoid losses with the increase in interest rates set by the central bank.
After reaching the level of 142.00, the Yen weakened again and until the opening of the European session today, the price was already at the level of 147.00.
The yen's depreciation was influenced by the latest indication from the central bank that no interest rate hikes will be made during a risky market environment.
BOJ Deputy Governor Shinichi Uchida is of the view that it is necessary for the central bank to maintain the current monetary policy.
His seemingly more cautious tone was seen in contrast to Governor Kazuo Ueda's more hawkish tone last week when he announced interest rate hikes.
