The Japanese yen gained today as demand for safety overcame Bank of Japan’s attempts to weaken the currency. The yen slumped earlier as the BoJ expanded its asset purchase program to support the struggling economy.
Japan’s central bank announced today that it is going to expand its Asset Purchase Program:
The Bank decided to increase the total size of the Program by about 5 trillion yen, from about 65 trillion yen to about 70 trillion yen.
The impact of the announcement was huge, but short-lived. Demand for safety among investors is simply too strong, especially as fears of the European crisis grow.
USD/JPY fell from 80.98 to 80.58 as of 8:55 GMT today, while it jumped to 81.44 earlier. EUR/JPY was down from 107.08 to 106.43 after it touched the high of 107.47.
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