The Japanese yen rallied today as the Bank of Japan decided to keep its monetary policy unchanged, a decision that had been widely anticipated.
The BoJ made no surprise keeping its monetary policy stable during today’s meeting. The central bank noted in the statement a possibility of additional monetary easing, saying that it would “take additional easing measures in terms of three dimensions — quantity, quality, and the interest rate — if it is judged necessary for achieving the price stability target.” Nevertheless, market participants focused on the absence of additional stimulus right now, driving the yen higher.
USD/JPY fell from 113.78 to 112.94 as of 16:43 GMT today. EUR/JPY dropped from 126.32 to 125.41.
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