The yen languished at two-and-a-half year lows against the dollar on Friday following a dramatic selloff as markets positioned for the Bank of Japan to take bold policy action to tackle deflation.
Sources familiar with the BOJ’s thinking told Reuters the central bank, under relentless pressure from Prime Minister Shinzo Abe, will next week mull pledging to buy assets open-endedly until 2 percent inflation is foreseen.
Such a move would represent a marked turnaround for a conservative central bank that has repeatedly resisted calls for bold action. It would also far exceed expectations the BOJ would opt for a more conventional step of topping up its asset-buying program at its Jan 21-22 meeting.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015