Yen slips to 20-year low in upper 131 level vs U.S. dollar

The yen fell briefly to a 20-year low in the upper 131 range Monday in New York as traders flocked to sell the Japanese currency for the U.S. dollar on speculation of further widening between the two countries' interest rates.

At 10:40 a.m., the dollar traded at 131.36-46 yen, compared with 130.76-78 yen at 5 p.m. Monday in Tokyo.

Against the backdrop of better-than-expected U.S. jobs data released late last week and soaring energy and food prices, the Federal Reserve is expected to raise interest rates aggressively toward the year's end.

In contrast, the Bank of Japan will likely maintain its accommodative monetary policy for the time being, with BOJ Governor Haruhiko Kuroda saying in a speech Monday that monetary tightening is not a "suitable" measure at all for the Japanese economy.

© Kyodo News