Japanese Yen Bought Following BOJ Rate And Stimulus Decision

By Eric Andersen,

THE TAKEAWAY : Key interest rate maintained at 0.10% > Though the rate decision was expected, traders were caught off guard by the BOJ’s lack of stimulus expansion > USDJPY rose as high as ¥81.477

The Bank of Japan decided, as widely expected, to hold the country’s overnight rate at 0.10 percent, continuing its low interest rate policy for the 28 th straight month.

Surprising analysts, however, was the BOJ’s lack of discussion regarding the expansion of its asset-purchasing, credit lending, and JBP purchasing programs. The market anticipated a continued increase to the BOJ’s stimulus programs, which had been a key factor in previous meetings.

After receiving the BOJ’s decision, traders adjusted their portfolios in favor of the Yen. The USDJPY hit peaks of ¥81.477 following the release.
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/10/Japanese_Yen_Bought_Following_BOJ_Rate_and_Stimulus_Decision_.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.