The Japanese yen gained today, rallying to the highest level since November against the US dollar, after US President Donald Trump failed to push his health care bill. Meanwhile, the Bank of Japan released the Summary of Opinions for the March policy meeting.
Trump’s failure to dismantle the Obamacare put markets into a risk-averse mode as investors were concerned that it was a sign that the President will also have troubles implementing policies that should boost growth and inflation.
The BoJ Summary of Opinions released today said:
Some market participants argue that the Bank needs to change the monetary policy in response to the rise in the long-term yields overseas.
Yet most central bank members’ believed that there is no hurry to change the extremely loose monetary policy:
It will be a considerable amount of time before the Bank will need to change its monetary policy.
USD/JPY dropped from 110.97 to 110.24 as of 13:34 GMT today. EUR/JPY fell from 120.20 to 119.54 intraday but bounced to 120.09 later.
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