Japanese Yen Drops as BoJ Performs Bond Buying to Control Yield

The Japanese yen was in the red across the board as the surging yields on global bonds prompted the Bank of Japan to step in to keep the yield curve in check.

The sell-off of global bonds caused the surge of yields. It was likely a result of the more hawkish stance of major central banks. In accordance to its yield control policy, the BoJ offered to buy an unlimited amount of 10-year Japanese government bonds. The aggressive bond buying resulted in losses for the yen.

USD/JPY rallied from 113.20 to 113.76 as of 8:38 GMT today, trading near the highs not seen since May 15. EUR/JPY gained from 129.29 to 120.89, hanging near the highest level since February 2016.

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