The dollar slid to a 15-year low against the yen Wednesday, dragged down by the anemic recovery in the world’s biggest economy.
The greenback was quoted at ¥84.71 in London, the lowest since 1995.
Investors stepped up selling dollars after the Federal Reserve announced Tuesday additional monetary easing steps in a bid to shore up the flagging U.S. economy. The central bank also downgraded its assessment of the economy’s prospects.
“Investors were unnerved by the Fed’s statement. It just confirmed that the U.S. economic recovery is slowing,” said a dealer at a Japanese bank in Tokyo. The dealer declined to be named as he was not authorized to talk to the media.
The dollar’s recent weakness against the yen has punished shares of exporters like Sony Corp. as it makes their products less competitive in overseas markets. It can also reduce the value of profits made overseas when they are returned to Japan.
The Nikkei 225 stock average tumbled 258.20 points, or 2.7 percent, to 9,292.85 on Wednesday. Sony dropped 2.8 percent and Nissan Motor Co. dived 3.6 percent.
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