Yen Jumps After BoJ Refrains from Stimulus
The Japanese yen climbed against all other major currencies today after the Bank of Japan left its monetary policy unchanged, refraining from expanding monetary stimulus.
The BoJ left its main interest rate near zero and the size of asset purchases unchanged at today’s policy meeting. The central bank voiced hopes in its statement that the economy will “return to a moderate recovery path as domestic demand remains firm and overseas economies emerge from the deceleration phase”. Still, the bank recognized threats from the escalating European crisis and the slowing US economic growth. The absence of further easing of the monetary policy helped the yen, which previously were weakened by expectations of stimulating measures from the BoJ.
USD/JPY fell from 79.33 to 78.86 and EUR/JPY dropped from 100.20 to 99.59 as of 9:19 GMT today.
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Earlier News About the Japanese Yen:
- Yen Falls as IMF Considers It Overvalued (2012-06-12)
- Yen Gains as Forex Market Leaves Risk-On Mode (2012-06-11)
- Yen Falls as Traders Feel Less Need for Safety (2012-06-07)
- Yen Drops as G7 Does Not Object Interventions (2012-06-05)
- Yen Climbs on Worse-Than-Expected US Macroeconomic Data (2012-06-01)