LONDON Feb 5 The yen fell to a 2-1/2 year low
against the dollar and dropped sharply versus the euro on
Tuesday as some Japanese companies stepped up hedging against
further weakness amid mounting expectations of more aggressive
easing by the Bank of Japan.
The dollar rose to 93.30 yen on trading platform EBS,
and was up 1 percent on the day. It was the highest since
mid-2010. Traders cited option barriers at 93.50 yen with more
barriers reported at 94 yen.
The euro also jumped more than 1 percent against the yen to
126.55 yen with Middle East investors cited as steady
buyers of the single currency.
Earlier, Bank of Japan Governor Masaaki Shirakawa said he
would step down on March 19, three weeks earlier than the
official end of his five-year term. He is due to address a press
conference later in the day.
Shirakawa is likely to replaced with a chief who is more
amenable to Prime Minister Shinzo Abe's drive to ease policy
aggressively to get Japan out of deflation.