Bank of Japan Pushes Yen Down

Bank of Japan decided to leave its monetary unchanged on today’s meeting upon releasing its monthly statement on the Japanese economic development. BoJ also left no signs of possible interest rates hike in the near future, leaving carry traders with the opportunity to continue using yen as the selling currency.
Preceding the BoJ meeting, Prime Minister Yasuo Fukuda spoke about recent yen’s appreciating against major currencies as fast and bearing potential danger to Japanese exporters. Given a word from a high level politician combined with BoJ uncertainty on the rate increases Forex reacted with yen going down against all major currencies, including U.S. dollar and Euro.
Although today’s yen depreciation was highest since October, 3, it is still can be treated as the correction for the last several day long growth. Global volatility is still high, which will, of course, hold yen in a good position against high-yielders.

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