The Japanese Yen has rallied against the US Dollar and all of its most traded peers after the Bank of Japan left investors disappointed after it chose to not expand its monetary stimulus programme.
Japan’s currency recovered from two consecutive days of loss against the US Dollar after the BOJ chose to maintain the current amount of stimulus and refrained from extending the maturity of loans to banks.
The Yen rose by 0.5% against all of its major peers.
Previously the Yen had weakened against the ‘Greenback’ after credit rating agency Standard & Poor’s changed the USA’s rating to AA+ and changed its status from negative to stable.
After the end of its two day long policy meeting the Central Bank told investors that it would keep its plans for a ¥60 trillion to ¥70 trillion annual increase in its monetary base. The news disappointed investors who had been expecting the Bank to approve two-year o longer loan operations. BOJ governor Haruhiko Kuroda said after the meeting that the central bank would discuss longer fund operations when needed.
“Those betting that the BOJ would do something were left a little disappointed,” said a strategist at Westpac Banking Corp. “The near-term risk is still skewed to the downside for Dollar-Yen. People have been very short Yen against other Asian currencies and the likes of Aussie and Kiwi, so I see risk that some of those trades get unwound further from here,” he said, referring to the Australian and New Zealand currencies.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.9954
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 152.4379
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.1678
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.6322
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.7188
(Correct as of 09:45 am GMT)