Japan's central bank has become the first among Group of Seven nations to own assets collectively worth more than the country's entire economy, following a half-decade spending spree designed to accelerate weak price growth.
The British pound dropped to a two-month low and the yen rallied Monday as jittery investors shifted into safer assets on worries about Britain's possible exit from the European Union. The flight to lower-yielding investments came as Asian stock markets plunged, with dealers awaiting meetings this week of the US and Japanese central banks.
The European Central Bank is ready to take action next month to boost the Euro zone economy if updated inflation forecasts merit it, said ECB president Mario Dragui warning outsiders not to pressure the bank into action.
Fitch cut Japan's sovereign credit status on Tuesday to the lowest level among global ratings agencies as a political stalemate dims the chance that the country can curb its snowballing debt.
Interest for Uruguayan ten-year bonds in Yens more than doubled the issue equivalent to 490 million US dollars. The bonds are guaranteed by Japan Bank for International Cooperation with a 1.6% yield.
Japan's parliament has passed a stimulus package worth about 61billion US dollars, designed to kick-start the country's fragile economic recovery. The government had already introduced several stimulus packages.
Japan's prime minister said that authorities would keep intervening to curb the country’s currency strength as sagging manufacturing confidence underscored the threat the currency poses to the fragile economic recovery.
Japan’s economy expanded at the slowest pace in three quarters. GDP rose an annualized 0.4% in the three months ended June 30 from a revised 4.4% expansion in the first quarter, the Cabinet Office said in Tokyo.
Global stock markets closed sharply Friday amid investor fears that Greece's debt crisis could halt the global economic recovery.