TOKYO: The Nikkei has closed down 3% for the second time this week after another rise in the Japanese yen against the dollar threatened exporters’ prospects. At one point the dollar fell to 104.06 yen, its lowest since August 2014. The benchmark Nikkei 225 index closed down 3.05% to 15,434.14 points.
The Bank of Japan boosted the yen, which has been gaining ground as a haven for nervous investors, further after it ended its meeting saying it would not add new stimulus. Continuing worries around the upcoming EU referendum in the UK are adding to general unease about the lack of economic growth.
Comments by the Federal Reserve head, Janet Yellen, overnight sounded a warning over a possible British exit from the EU. A stronger yen hurts Japan’s big exporters. It makes their goods more expensive to buy overseas and affects their bottom line when they repatriate earnings.
