The Japanese yen has grown quite a bit against the US dollar. The current quote is 132.60.
At today’s meeting, the BoJ decided to keep the interest rate without a change at -0.10% a year.
What came as a surprise was the announcement of an unlimited purchase of one to five-year bonds. The sum meant to spent on it from now on is 600 billion yen. On one to three-year bonds, three to five-year bonds, and ten to twenty-five year bonds, 100 billion Japanese yen will be spent, respectively. 300 billion yen more will be spent on five to ten-year bonds. Extra bond purchases are scheduled for 22 December.
The Bank plans to react to each bond issuing, to increase purchases, and expand volumes of operations with fixed-rate securities, when necessary. Moreover, the Bank of Japan will set a fixed rate for auctions with ten-year bonds.
For the yen, everything happening is interventions, either open or hidden.
Free Reports:
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
A peculiar situation has formed: the BoJ decided against changing its ultra-soft policy but brought the debt sector out of balance totally, thus supporting the JPY.
Article By RoboForex.com
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
- The People’s Bank of China kept key rates unchanged. Oil grows amid escalating conflict in the Middle East Sep 20, 2024
- AUD/USD Reaches New Heights as Risk Sentiment Improves Sep 20, 2024
- Brent Crude Oil Rebounds Amid Monetary Easing and Market Dynamics Sep 19, 2024
- The US Fed surprised the market with a sharp rate cut. Australia’s labor market remains resilient Sep 19, 2024
- The US Federal Reserve will begin its rate-cutting cycle today. In the UK, inflation figures were unchanged Sep 18, 2024
- USDJPY Experiences Renewed Decline as Market Adjusts Expectations Sep 18, 2024
- Countdown to Fed decision enters final hours Sep 18, 2024
- Gold (XAUUSD) Holds Near Record Highs Amid Anticipation of Fed Rate Cut Sep 17, 2024
- EUR/USD Gains as Fed Meeting Approaches Sep 16, 2024
- The US Federal Reserve may start the rate-cutting cycle with a 0.5% move. Silver reached a 2-month high Sep 16, 2024