Japanese Yen Lower After BoJ Meeting

1,000-yen banknotesThe Japanese yen fell today after the Bank of Japan maintained its ultra-loose monetary policy and did not discuss its stimulus-exit plans.

The BoJ left its key interest rate at -0.1% and the size of the asset-purchase program at ?¥80 trillion, exactly as was expected by market participants. But they were also expecting a discussion of plans for the eventual exit from the extremely accommodative policy and were disappointed as the central bank failed to mention such plans. In fact, BoJ Governor Haruhiko Kuroda said that it is “inappropriate” to discuss such plans now as there is “some distance” to achieving the central bank’s goal of 2% inflation.

USD/JPY rose from 110.92 to 111.16 as of 12:56 GMT today, touching the daily high of 111.41. EUR/JPY rallied from 123.63 to 124.23.

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