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Yen Slides to 6-Year Low

During Friday morning trading in Tokyo, the dollar gained ground and hit the upper 105 yen level, a rate we haven't seen since October 2008, exactly 5 years and 11 months ago.

One reason why the dollar was stronger is that investors are becoming more confident about the US economy.

Data on Thursday, like service sector growth, was better than expected, and confirmed those views.

Analysts say the dollar may come in for some profit taking in the short-term, but they expect the US currency to continue its upward trend against the yen.

Japan's Finance Minister Taro Aso expressed his concern about the rapid market movements.

"Currency values in the foreign exchange market should show a gradual advance or decline. A rapid appreciation or depreciation of currencies is a very risky development."
Taro Aso / Japanese Finance Minister

Meanwhile, Economic Revitalization Minister Akira Amari said all of this is not surprising, as this move is more to do with a stronger dollar.

"US policymakers are coming up with concrete steps for an exit strategy ... from their monetary easing measures. These factors are driving up the dollar and making the yen weaker."
Akira Amari / Japanese Economic Revitalization Minister

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