Japanese Yen

The yen strengthened during 2010 with USDJPY falling to a 15-year low of 80.21 yen in November 2010, nearly matching the record low of 79.78 yen posted in 1995. The Bank of Japan during 2010 maintained its extremely easy monetary policy and even expanded its quantitative easing program of buying bonds and other assets. Moreover, Japan’s economy was generally weak during 2010 and the country’s cumulative debt load continued to rise. Nevertheless, the yen in 2010 rallied on Japan’s large current account surplus, which has the effect of reducing the amount of yen available internationally.