No respite for Japan as yen soars to 18-month high

London

THE yen jumped to an 18-month high against a weak US dollar on Tuesday, extending gains that have undermined Japanese officials' attempts to reflate the developed world's most stagnant economy. The yen also rose sharply against the Australian dollar, up 1.7 per cent after the Reserve Bank of Australia cut interest rates to record lows.

The yen has now risen over 12 per cent against the US dollar this year, extending gains after the Bank of Japan kept monetary stimulus unchanged last week. Further gains are likely to fan talk of further easing by the BOJ sooner rather than later, traders said, as Japanese politicians also signalled concerns about the currency's run-up.