Yen Advances as BoJ Refrains from Stimulus
The Japanese yen advanced today after the Bank of Japan refrained from stimulating the nation’s economy and left its monetary policy unchanged. Earlier, the currency weakened as the Asian stocks rallied, reducing demand for the safety of yen.
The BoJ kept its main interest rate near zero and the size asset purchases at 45 trillion yen, while the lending fund remained at 25 trillion yen. The bank said in the statement that “Japan’s economic activity has started picking up moderately” and ”Japan’s economy is expected to return to a moderate recovery path”. The MSCI Asia Pacific Index of shares rose 0.8 percent, while in the previous three days it was up 2.6 percent.
USD/JPY was down from 78.42 to 78.36 as of 11:39 GMT today, while it rose to 78.57 earlier. EUR/JPY dropped from 96.96 to 96.41, falling from the daily high of 97.27.
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Earlier News About the Japanese Yen:
- Japanese Yen Gains the Upper Hand as Traders Show Caution (2012-08-08)
- Yen Gains Even as Risk Appetite Persists on FX Market (2012-08-07)
- Risk Aversion Sends Japanese Yen Higher, Officials Fret (2012-08-02)
- Japanese Yen Rises as Eurozone Uncertainty Grows (2012-07-30)
- Yen Threatened by Deflation (2012-07-26)