The Japanese yen rallied against other most-traded currencies today amid risk aversion caused by the escalating trade tensions between the United States and China. The currency gained even as Japan’s central bank signaled about the possibility of additional monetary easing.
The Bank of Japan released the Summary of Opinions at its July monetary policy meeting. The bank said in the document:
The Bank should communicate more clearly, both at home and abroad, that it will not hesitate to take additional monetary easing measures if there is a greater risk that the momentum toward achieving the price stability target will be lost. The Bank also should examine possible easing measures in advance.
Yet markets ignored the statement as investors’ need for safety overshadowed the monetary policy outlook.
USD/JPY slipped from 106.47 to 106.19 as of 18:10 GMT today, touching the low of 105.49 intraday. EUR/JPY was down from 119.11 to 119.04, while its daily minimum was at 118.43.
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