Yen Moves Lower After BoJ Doesn’t Mention End of Stimulus

The Japanese yen slipped today after Haruhiko Kuroda, Bank of Japan Governor, disappointed markets as he failed to mention plans to end aggressive monetary accommodation.

As was widely expected, the BoJ kept its main interest rate at -0.1% and the size of annual asset purchases at ¥80 trillion. Considering the previous comments from Kuroda about dangers of keeping monetary policy extremely accommodative for a long time, market participants were expecting that the central bank would mention plans for ending the stimulus in its statement. Yet the statement did not contain such references, keeping the pledge to maintain quantitative and qualitative easing until inflation reaches the bank’s 2% goal.

USD/JPY rose from 113.38 to 113.48 as of 10:02 GMT today. EUR/JPY edged up from 134.60 to 134.78, trading near the highest level since October 2015.

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