Japanese yen rallies following BOJ stands on policy
January 21, 2015 5:48 am
The Japanese yen snapped back versus the US dollar Wednesday following the Bank of Japan stood on its monetary policy.
Speculators who expected more easing measures covered their short yen positions.
The Japanese central bank did not expand its bond buying program. Instead, the BOJ stretched its loan schemes seeking to bolster lending.
In the light of declining oil prices, the BOJ also reduced its inflation forecast to 1% from 1.7%.
Against the US dollar, the yen slid 0.9% at ¥117.76, moving back to a one-month low of ¥115.85. The currency had increased as far as ¥118.87 following investors sold the yen before BOJ’s decision.
The yen traded at ¥136.17 per euro from Friday’s ¥134.70.
Projections the central bank would ease were low, “so the yen’s appreciation is within the limits of reason,” said Masafumi Yamamoto, Market Strategist at Praevidentia Strategy.
The material has been provided by InstaForex Company – www.instaforex.com
The Japanese yen snapped back versus the US dollar Wednesday following the Bank of Japan stood on its monetary policy.
Speculators who expected more easing measures covered their short yen positions.
The Japanese central bank did not expand its bond buying program. Instead, the BOJ stretched its loan schemes seeking to bolster lending.
In the light of declining oil prices, the BOJ also reduced its inflation forecast to 1% from 1.7%.
Against the US dollar, the yen slid 0.9% at ¥117.76, moving back to a one-month low of ¥115.85. The currency had increased as far as ¥118.87 following investors sold the yen before BOJ’s decision.
The yen traded at ¥136.17 per euro from Friday’s ¥134.70.
Projections the central bank would ease were low, “so the yen’s appreciation is within the limits of reason,” said Masafumi Yamamoto, Market Strategist at Praevidentia Strategy.
The material has been provided by InstaForex Company – www.instaforex.com
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