Japanese Yen Strongest on FX Market Despite BoJ Statement

The Japanese yen was the strongest major currency today despite pledge of Japan’s central bank to keep monetary policy extra loose for at least a year.
As was widely expected, the Bank of Japan kept its monetary policy unchanged at today’s meeting. The bank said in the statement:

The Bank intends to maintain the current extremely low levels of short- and long-term interest rates for an extended period of time, at least through around spring 2020, taking into account uncertainties regarding economic activity and prices including developments in overseas economies and the effects of the scheduled consumption tax hike.

But the yen did not care about the dovish message as concerns about slowing global growth made investors to seek safety of the Japanese currency.
USD/JPY dropped from 112.19 to 111.89 as of 10:01 GMT today. EUR/JPY declined from 125.12 to 124.69.

If you have any questions, comments, or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

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