Yen Tumbles in Longest-Ever Losing Streak as BOJ Stands Dovish By

(Bloomberg) — The yen is skidding toward its longest losing streak in at least half a century as traders weigh the diverging paths of monetary policy in Japan and the U.S.

The Japanese currency is sliding against the dollar for a 12th consecutive session on Monday after Bank of Japan Governor Haruhiko Kuroda warned of sharp yen moves as he looks to keep stimulating a fragile economy. The comments come in stark contrast to expectations in the U.S. for more aggressive tightening expected from the Federal Reserve, which have buoyed the greenback.

“The move in the yen is incredible,” said Bipan Rai, head of foreign-exchange strategy at CIBC. “But given the differing stances of the Fed and BOJ, it shouldn’t be all that surprising.”

Read more: BOJ’s Kuroda steps up warning on ‘very rapid’ yen moves

The yen fell as much as 0.4% to 126.98 per dollar on Monday after Kuroda pointed to the potential for “very rapid” moves in the currency as rates are seen staying low. That pushed the yen to its lowest since May 2002 and has left it set to extend its longest decline since records compiled by Bloomberg begin in 1971, when the U.S. left the gold standard. 

The dollar, meantime, strengthened as investors look ahead to speeches by Fed policy makers this week for new clues on whether the central bank will raise interest rates by a half point in May to curb price pressures.

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