Forex News
April 26, 2013 @ 12:17 pm

Yen stronger after Bank of Japan policy meeting

The Bank of Japan held its monthly policy meeting on Friday and announced its unanimous decision to leave its monetary policy unchanged but maintained a pledge to double the country’s monetary base in two years.

Markets showed their disappointment and sold off the dollar against the yen, as they were expecting more from the central bank to take more aggressive steps to fight deflation in the economy.

At the new Bank of Japan governor’s first policy meeting on April 4, Kuroda announced his decision to inject about $1.4 trillion into the Japanese economy to fight deflation and reach a 2 percent inflation target in two years. That announcement weakened yen considerably.

Falling short of taking more steps and failing to give further guidance to investors today in the BOJ’s monetary policy caused a sell off in USDJPY.

The yen strengthened against all 16 of its major counterparts after the BOJ policy meeting announcement. The yen strengthened by over 1 percent versus the dollar, and USDJPY dropped to as low as 98.22 yen.

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