BOJ adds extra $98bn into markets

Fears over the impact of a stronger yen are prompting BOJ action

The Bank of Japan has pumped an extra five trillion yen ($61bn; £38bn) into the country’s banking system as it looks to shore up investor sentiment following the earthquake and tsunami.

The move comes a day after the bank injected 15tn yen into the banking system.

It has said it will take every possible measure to ensure the stability of Japan’s financial markets.

On Tuesday, the Nikkei 225 stock index dropped for a second day, sliding 6%.

The yen weakened on the news, which is what the central bank wanted.

It is concerned that a strong currency will hamper exports and make it harder for companies to make profits.

The bank also said it would double its asset buying fund to 10tn yen to support businesses.

Monday’s injection of 15tn yen was the largest ever single operation by the Japanese central bank.

Analysts have said that it will probably cost Japan hundreds of billions of dollars to rebuild after the earthquake and tsunami that hit the country.

It is dealing with a massive clean-up operation, the threat of nuclear meltdown, power shortages and significant economic disruption.

On Monday, the BOJ’s nine-member policy board decided to keep its key interest rate at virtually zero.

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