Yen Falls Toward Seven-Year Low as Industrial Production Shrinks

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The yen declined toward a seven-year low against the dollar after government reports showed industrial production shrank in November and inflation slowed.

Japan™s currency fell versus all of its 16 major counterparts as the data added to speculation the central bank will introduce more stimulus measures to try to raise the economy out of recession. The dollar headed for a second weekly gain versus the euro after data this week showed the U.S. economy accelerated last quarter, giving the Federal Reserve more reason to raise interest rates next year. European financial markets are shut today for a holiday.

The yen fell 0.2 percent to 120.37 per dollar at 9:18 a.m. in Tokyo, extending this week™s decline to 0.7 percent. The currency depreciated to 121.85 percent on Dec. 8, the least since July 2007. The yen dropped 0.1 percent to 146.91 per euro. The dollar gained 0.2 percent to $1.2207 per euro, having advanced 0.2 percent this week.

Source : Bloomberg