Japanese yen falls to lowest level since 1998

The Japanese yen on Thursday fell to its lowest level against the US dollar since 1998 as the monetary policy gap between the Bank of Japan and the US Federal Reserve is expected to widen.

With the loss in the yen's value, the US dollar/yen exchange rate rose to 140 for the first time since August 1998.

Bank of Japan Governor Haruhiko Kuroda has vowed to keep monetary policy ultra-loose, saying that external factors driving domestic inflation higher will ease next year.

In contrast, Fed officials have stressed that interest rate hikes are appropriate until inflation eases significantly.

In July, the Fed hiked its benchmark interest rate by 75 basis points, the fastest pace of tightening in four decades.

The Japanese currency has lost nearly 22% against the dollar since the beginning of this year.