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The Japanese yen fell to a new 20-year low against the dollar on Wednesday, driven by expectations that the Bank of Japan will defy global trends and leave monetary policy loose.

The yen fell 1.4 percent against the US currency, moving it above 134 yen to the dollar. It has fallen by about 4% this month and in recent days has been approaching its weakest level since the beginning of 2002.

The move came after the governor of BoJSaid consumers had become “more tolerant” of rising prices, comments he later recalled. Speaking at the FT’s global conference room event, Haruhiko Kuroda said that the weakening of the yen would increase the profits of Japanese companies.

In stark contrast to other major central banks, the BoJ did Decided against tightening monetary policy in the previous months.

“The dollar has seen a meteoric rise against the Japanese yen in the last three months, with the Bank of Japan maintaining a dove policy vis-à-vis the Federal Reserve,” strategists at Bespoke Investment Group said on Wednesday.

Investors expect policymakers in the U.S. and the eurozone to take a markedly different stance as they try to tame inflation, a view that has weighed on government bond prices this year.

This weakness lengthened on Wednesday, when the yield on the 10-year US Treasury bill rose by 0.07 percentage points to 3.4% as the debt fell. CFOs are betting that the Federal Reserve will raise its policy rate above 3% next year, a shift that has already led to financial markets.

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