USD/JPY at 102.50 after BOJ Forecast

The yen was higher against major currencies in Asian trade Wednesday as the Bank of Japan’s closely-watched semiannual forecast on the nation’s inflation and growth rates ended up being mostly in line with expectations.

The greenback fell to as low as Y102.28 after the BOJ forecast around 0600 GMT but then advanced toward Y102.38 around 0635 GMT. That compares with a reading of Y102.64 in late Tuesday trading in New York. Meanwhile, at around 0550 GMT, the euro was at Y141.32 from Y141.75.

Jittery investors found the central bank’s inflation and growth outlook to be mostly in line with the market consensus.  The BOJ projected that prices will hit its 2% inflation target and stay there without the need for fresh monetary stimulus. But it lowered its forecast for Japan’s economic growth.


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