Japanese yen jumps against dollar after Bank of Japan decision disappoints

Japanese yen jumps against dollar after BOJ decision disappoints

he safe-haven yen jumped against the dollar on Friday after the Bank of Japan’s monetary policy easing disappointed investors who had been hoping for more radical stimulus measures.

The dollar last traded at 103.35 yen, down 1.8 per cent on the day. It initially rose to 105.75 yen right after the BOJ’s announcement but later tumbled to as low as 102.705 yen.

“There’s (dollar/yen) selling on the back of disappointment. Other than ETFs (exchange-traded funds), they didn’t announce anything,” said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.

The BOJ announced a modest increase in purchases of ETFs, but maintained its base money target at 80 trillion yen ($775 billion) as well as the pace of purchases for other assets including Japanese government bonds.

The BOJ also kept negative interest rates unchanged at minus 0.1 per cent.
[“source-gsmarena”]