Yen Appreciates as BoJ Remains Passive

The Japanese yen gained today as the nation’s central bank refrained from expanding its already substantial monetary stimulus during its policy meeting. The currency gained even though analysts speculated that additional monetary easing is still in the cards.
The Bank of Japan kept its interest rates near zero and the asset purchase program at ¥80 trillion. The statement said that the Japan’s economy continues to recover moderately and is expected to do so in the future. The tone of the comments was considered by market participants to be optimistic enough for the yen to become attractive, even though economists said that additional easing in the fourth quarter of this year remains probable.
USD/JPY dropped from 120.22 to 119.60 and EUR/JPY fell from 136.03 to 135.44 as of 12:24 GMT today.

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