Friday witnessed a surge in dollar demand versus the beleaguered Japanese yen (JPY). The USD/JPY pairing not only recorded its largest one-day gain this year (+1.7%), but the exchange rat🔯e also refreshed multi-decade highs and is swiftly closing in on the ¥160 region, a 1990 peak.
Earlier on Friday, Asia Pac trading witnessed the Bank of Japan (BoJ) leave rates unchanged at 0.0%-0.1%, as widely expected. Yet, what was not anticipated by market analysts was that BoJ Governor Kazuo Ueda, 🍒following the rate announ🦂cement, communicated that yen weakness has so far had no ‘major’ impact on inflation. The central bank’s chief stated that the plan is to maintain an accommodative policy for now, which was more dovish than expected and, hence, further depreciation in the yen was seen.
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