Japanese yen hits 27-month low against US dollar

The Japanese yen has dipped to a 27-month low against the US dollar amid speculation that policymakers will take steps to weaken the currency.

It was trading close to 85.84 yen against the US dollar in early Asian trade, the lowest since September 2010.

The Japanese currency has fallen almost 7% against the US dollar since mid-November 2012

Japanese Yen has also dipped against the euro and was trading at 113.60 yen against the single currency in Asian trade on Thursday - the lowest level since July 2011.

A weak yen bodes well for the Japanese exporters as it not only makes their goods more affordable to foreign buyers but also helps boost their profits when they repatriate their foreign earnings back home.