The Japanese yen extended its rally today, rising for the third straight session against the euro and the Great Britain pound, even after the Bank of Japan introduced new measures to boost economic growth.
The BoJ issued the joint statement together with the government, saying that the central bank will coordinate its efforts with lawmakers to achieve sustainable economic growth. As was expected, the BoJ set the inflation target to 2 percent. Moreover, the bank performed a move not unlike the Federal Reserve has done, making its asset purchase open-ended. As it was explained:
With respect to the Asset Purchase Program, after completing the current purchasing method, from January 2014, the Bank will introduce a method of purchasing a certain amount of financial assets every month without setting any termination date.
The yen defied the common logic, continuing to advance even after Japan’s central bank adjusted its quantitative easing program. Some market analysts explained that traders were disappointed after they had not seen any actual increase of asset purchases.
USD/JPY fell from 89.58 to 88.67 as of 10:06 GMT today. EUR/JPY declined from 119.25 to 118.28 and GBP/JPY went down from 141.78 to 140.48.
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