Japanese Yen Soft Against Euro & Swiss Franc

The Japanese yen was little changed against the US dollar but fell against the euro and the Swiss franc during the current trading session due to unfavorable macroeconomic data and a surprise statement from the Bank of Japan chief.

The Nikkei Flash Japan Manufacturing Purchasing Managers’ Index slid from 53.3 in February to 52.6 in March instead of rising a little to 53.5 as analysts had predicted.

BoJ Governor Haruhiko Kuroda spoke at the Reuters Newsmaker event today, stating that he sees no reason to remove monetary stimulus:

While some improvements have been observed in economic and price developments, there is still a long way to go to achieve our price target.

That was a surprise to many experts as most of them were expecting Japan’s central bank to start making policy less accommodative very soon.

USD/JPY traded close to its opening level of 110.97 as of 10:22 GMT today. EUR/JPY rallied from 119.66 to 119.97. CHF/JPY gained from 111.71 to 112.00.

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