Yen Leaps as BoJ Remains Passive

The Japanese yen leaped against the US dollar and gained versus other most-traded currencies today (though it was unable to beat the euro) as the Bank of Japan refrained from expanding monetary stimulus. The central bank remained passive even after the nation’s economy has entered technical recession.
The BoJ kept its interest rates and the asset purchase program without a change at today’s policy meeting. Some economists had expected the bank to stimulate the economy that was in decline for two months in a row, meaning that it is now in recession technically. Yet Japanese policy makers made no move, and this fueled strength of the yen.
USD/JPY dipped from 123.62 to 123.07 as of 12:04 GMT today. At the same time, EUR/JPY ticked up from 131.73 to 131.86 while its daily low was at 131.42 and the daily high was at 132.26.

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