The yen has its longest losing streak in nearly 40 years

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The yen has its longest losing streak in nearly 40 years

The yen has had its longest losing streak in at least half a century as traders weighed the divergent paths of monetary policy in Japan and the U.S.

The Japanese currency slid against the dollar for a 12th consecutive session on Monday after Bank of Japan Governor Haruhiko Kuroda warned of sharp yen moves as he attempts to keep stimulating a fragile economy. The comments came in stark contrast to expectations in the U.S. for more aggressive tightening expected from the Federal ReserveFederal Reserve, which has buoyed the dollar.

Bipan Rai, head of foreign-exchange strategy at CIBC, said that the move in the yen is incredible. It shouldn't be surprising given the different positions of the Fed and BOJ. Read more: BOJ s Kuroda steps up warning on very rapid yen moves.

The yen fell by 0.4% to 126.99 per dollar on Monday in New York, after Kuroda pointed out the potential for very rapid moves in the currency as rates are seen to stay low. The yen has fallen to its lowest since May 2002 and was its longest declining streak since records by Bloomberg began in 1971, when the U.S. left the gold standard.

The dollar has strengthened as investors look forward to speeches by Fed policy makers this week for new clues on whether the central bank will raise interest rates by half point in May to curb price pressures.

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