USD/JPY up to 104.70 as BOJ Meets

The yen fell versus its major peers as the Bank of Japan began a two-day monetary policy meeting amid speculation Governor Haruhiko Kuroda will expand stimulus this year to counter the drag from a planned sales tax increase.

Japan’s currency weakened against the dollar, ending a three-day advance, as Asian stocks gained, reducing demand for haven assets. The Bloomberg Dollar Spot Index rose for a sixth day as signs of U.S. economic growth backed the case for the Federal Reserve to pare bond purchases. New Zealand’s dollar remained higher after the nation’s inflation accelerated more than economists forecast, supporting the view that the Reserve Bank will tighten policy.

“The dollar-yen is very compelling, because you’ve got a situation of diverging policies,” said Stan Shamu, the Melbourne-based market strategist at IG Ltd. “With that sales tax hike kicking in from April, the BOJ might look to reaffirm its position with regard to stimulus.”


Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.