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The Japanese yen fell to a new 20-year low against the dollar on Wednesday, pushed lower by expectations that the Bank of Japan will defy global trends and maintain loose monetary policy.

The yen lost up to 1.4% against the US currency, exceeding 134 yen per dollar. It has fallen about 4% this month and in recent days has approached its lowest level since the start of 2002.

The move came after the BoJ governor said consumers had become “more tolerant” of price hikes, comments he later retracted. Speaking at the FT’s Global Boardroom event, Haruhiko Kuroda said a weaker yen would boost profits for Japanese companies.

Unlike other major central banks, the BoJ has decided not to tighten monetary policy in recent months.

“The dollar has seen a meteoric rise against the Japanese yen over the past three months as the Bank of Japan maintains a dovish policy towards the Federal Reserve,” strategists at Bespoke Investment Group said on Wednesday.

Investors expect policymakers in the United States and the eurozone to take a markedly different stance as they attempt to rein in inflation, a view that has weighed on government bond prices this year.

That weakness continued on Wednesday, with the yield on the 10-year US Treasury rising 0.07 percentage points to 3.04% as the price of debt fell. Fund managers are betting that the Federal Reserve will raise its benchmark rate above 3% next year, a change that has already rippled through financial markets.

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