Yen dives on BOJ report, sterling hit by downgrade

SYDNEY Sun Feb 24, 2013 4:10pm EST

SYDNEY Feb 25 (Reuters) - The yen slumped early Monday after the Nikkei reported the Japanese government had chosen Haruhiko Kuroda to be the new head of the Bank of Japan, fuelling expectations of aggressive monetary easing.

The report also said that Gakushuin University economics professor Kikuo Iwata had been chosen as one of the deputy governors. Both men are considered by the market as doves who would be more likely to take bold steps to reflate the economy.

The dollar rose as far as 94.77 yen, the highest since May 2010, from 93.39 late in New York on Friday. The euro rose to 125.10 yen, from 123.12 on Friday.

Sterling also slid in the wake of Moody's downgrade of the UK's credit rating, hitting $1.5079, from $1.5160 late on Friday.

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