The Japanese yen reached fresh multi-year lows today even though the Bank of Japan decided to keep its monetary policy unchanged, refraining from additional stimulus. It looks like negative factors are just too strong, muting any good news for the currency.
The vast majority of Board members voted for keeping the size of asset purchases unchanged during today’s meeting, with only one dissenter. The central bank expanded its quantitative easing program at the surprise policy meeting on October 31. That time votes were divided almost equally among those who wanted to increase the size of the bond-buying program and those who preferred to keep monetary policy unchanged.
USD/JPY rose from 116.85 to 117.60 as of 12:55 GMT today, trading near the highest level since October 2007. EUR/JPY advanced from 146.46 to 147.37, and its daily high of 147.54 was the strongest rate since October 2008.
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