JPY Rises as BOJ Disappoints With No Further Easing

The U.S. dollar plunged by 3 yen to the lower 108 yen range Thursday in Tokyo after the Bank of Japan kept its monetary policy on hold despite market expectations of further easing.

At 5 p.m., the dollar fetched 108.39-41 yen compared with 111.40-50 yen in New York and 111.20-21 yen in Tokyo at 5 p.m. Wednesday. It moved between 108.05 yen and 111.88 yen during the day, changing hands most frequently at 111.74 yen.

The euro was quoted at $1.1346-1348 and 122.98-123.02 yen against $1.1317-1327 and 126.21-31 yen in New York and $1.1330-1331 and 125.99-126.03 yen in Tokyo late Wednesday afternoon.

The BOJ left its monetary stimulus unchanged at the end of a two-day policy meeting, while some market participants had expected the central bank to expand the already massive asset purchase program or cut interest rates on bank reserves at the BOJ further into negative territory.

“Selling of the dollar spread with some disappointment among traders who had raised expectations of additional easing,” said Toru Moritani, chief market economist at Sumitomo Mitsui Banking Corp.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza