The yen hit a 38-year low as the market lost confidence in the Bank of Japan’s (BOJ) commitment to tightening and was little impressed by vague assurances from a government official about intervention.

“The lack of intent to tighten policy in any meaningful way has encouraged the market to drive down the value of the yen,” said Jason Wong, a senior markets strategist at BNZ Markets.

“It’s fair to say that the BOJ's policy stance is contributing to yen weakness.”