The yen tumbled to its lowest in more than four years against the dollar on Friday on data showing Japanese investors were buying more foreign assets, while the greenback rallied broadly as U.S. data sparked talk the Federal Reserve may scale back monetary easing.
With the Japanese currency breaching the 100-level, analysts expect the yen to fall further. Some have called for the dollar to rise to 105 yen this summer and 110 yen by the end of the year.
Exacerbating the yen's slide was the market's broad buying of the dollar on speculation the Fed will start winding down its asset purchases, or quantitative easing, after two upbeat labor market indicators—last Friday's robust non-farm payrolls report and Thursday's weekly jobless claims.
"The break of the 100-yen level unleashed the animal spirits," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.