On Thursday the greenback edged lower against the yen after the Bank of Japan decided to stand pat on the monetary policy which spurred demand for the Japanese currency.
In a widely expected move, the Bank of Japan’s nine policy board members voted 8-1 to maintain the policy of buying assets at an annual pace of ¥80 trillion. The BOJ last raised the purchase amount in October.
The yen was boosted by the news with the greenback last seen at ¥119.59, lower 0.52%. That compared with ¥120.23 late Monday in New York.
The U.S. currency was higher against the euro, which was at $1.1300 midday from $1.1315 late Monday.
Takuya Kanda, senior researcher at Gaitame.Com Research Institute, said he did not expect such a reaction. He said he had felt expectations for BOJ easing were mounting from earlier this morning, as indicated by a rise in the benchmark Nikkei Stock Average.
After rising 2.0% in mid-morning, the Nikkei trimmed most of its gains, and was up only 0.2% immediately after the BOJ decision. The index was last up 0.9%.
Elsewhere in the currency market, the Australian dollar was weaker at $0.7107 and ¥85.52 midday from $0.7138 and ¥85.19, respectively.
The Aussie gained earlier in the session as investors viewed the country’s new prime minister as positive. Malcolm Turnbull, a 60-year-old former investment banker, will succeed Tony Abbott.
However, the local currency turned down after the Reserve Bank of Australia issued the minutes of its Sept. 1 policy meeting, at which it maintained a neutral tone on the outlook for interest rates.
The euro was at ¥135.47 from ¥136.08.
Credit: mql5.com
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