The Japanese Yen has strengthened against the Pound and US Dollar after the Bank of Japan opted to hold back on adding to its massive stimulus programme.
The decision to hold off on introducing further stimulus measures came after data released earlier in the week showed that business confidence in Japan soared and as Prime Minister Shinzo Abe declared that the country’s economy will be able to cope with a sales tax increase.
Bank Governor Haruhiko Kuroda told a press conference in Tokyo that he was keeping a close eye on the impacts of the ongoing uncertainty in the United States and any signs of possible weakness in the Japanese economy.
“The economy is a living creature and we can’t control domestic or external risks, especially those from abroad, so taking that into consideration, I will continue to respond carefully and appropriately, the most important thing is that we maintain trust in the nation’s finances. In that sense, it was a very meaningful decision. I expect efforts to steadily continue to achieve a sustainable fiscal situation.”
Regarding the partial closure of the US Federal government MR Kuroda said; “If prolonged, it will have a serious impact on the US economy and the global economy. I hope that they will solve the problem as soon as possible and eliminate the uncertainties.”
Those uncertainties added to the Yen’s strength as investors turned to the safe haven currency. The currency is also still feeling the result of Business confidence in Japan soaring to a six-year high as Abe’s bold plan to get the nation’s economy moving appears to be working.
Current Japanese Yen (JPY) Exchange Rates:
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.1337 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 156.4539 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.2182 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.6208 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.6272 <
(Correct as of 12:15 pm GMT)