Yen Erases Losses as Policy Makers Refrain from Expanding Stimulus

The Japanese yen erased earlier losses and was little changed today after the Bank of Japan left interest rates and the asset purchase program unchanged, confirming that policy makers are not ready to expand stimulus even more.
The BoJ left interest rates near zero and maintained the asset purchase program at ¥60–70 trillion (mostly through purchase of Japanese government bonds). Such decision was widely expected by market participants. The statement said that “Japan’s economy is starting to recover moderately” and “inflation expectations appear to be rising on the whole”.
USD/JPY was near the opening level of 96.32 as of 12:29 GMT today after rising to 96.92 intraday. EUR/JPY rose from 128.43 to 128.72, but retreated from the daily high of 129.22.

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