Japanese Yen Extends Decline After BoJ Decision
The Japanese yen continued to be lower against its most major
counterparts in the European session on Friday, after the Bank of
Japan maintained its accommodative stance on monetary policy and
reiterated that its interest rates would remain unchanged for the
foreseeable future due to the uncertainty about the impact of
Russia's invasion of Ukraine.
The policy board, governed by Haruhiko Kuroda, on Tuesday, voted
8-1, to hold the interest rate at -0.1 percent on current accounts
that financial institutions maintain at the central bank.
The bank will continue to purchase a necessary amount of
Japanese government bonds without setting an upper limit so that
10-year JGB yields will remain at around zero percent.
Japan's economy has picked up as a trend, the bank said.
Inflation is likely to increase clearly in positive territory for
the time being due to a significant rise in energy prices, the BoJ
The bank noted that in the wake of Russia's invasion of Ukraine,
global financial and capital markets have been volatile and prices
of commodities such as crude oil have risen significantly, and
future developments warrant attention.
Data from the Ministry of Internal Affairs and Communications
showed that Japan consumer prices rose 0.9 percent on year in
That exceeded forecasts for an increase of 0.7 percent and
accelerated from 0.5 percent in January.
The currency has been trading in a negative territory against
its key counterparts in the Asian session.
The yen weakened to 127.31 against the franc, a level unseen
since August 2015. If the currency falls further, 131.00 is likely
seen as its next support level.
The yen fell to 119.01 against the greenback and 156.55 against
the pound, down from its early highs of 118.47 and 155.86,
respectively. The currency may test support around 121.5 against
the greenback and 159.00 against the pound.
The yen dipped to its lowest level since September 2015 against
the loonie, at 94.41. Against the kiwi, it was down at a
4-1/2-month low of 82.10. Should the yen falls further, 96.00 and
84.00 may be seen as its next support levels against the loonie and
the kiwi, respectively.
The yen was lower against the aussie, at more than a 4-year low
of 88.06. On the downside, 90.00 is possibly seen as its next
In contrast, the yen rebounded to 131.35 against the euro, after
falling to 131.90 at 8:15 pm ET. At yesterday's close, the pair was
worth 131.52. The currency is seen finding resistance around the
Looking ahead, U.S. existing home sales for February, Canada
retail sales for January and new housing price index for February
will be published in the New York session.
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