The Japanese Yen has plummeted to a 17-month low against the US Dollar after the Bank of Japan announced that it would be launching larger-than-expected economic stimulus measures as it continues to devalue the currency.
Against the majority of its peers the Yen fell by at least 2.1% as BOJ governor Haruhiko Kuroda and policy makers doubled the bank’s monthly bond purchases and set a two-year time frame to achieve their target of 2% annual inflation. The two day policy meeting was Kuroda’s first as head of the bank after he was elected to the position of governor last month.
“The BOJ will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 trillion Yen to 70 trillion Yen ($645 billion to $755 billion),” the central bank said in a statement.
The bank revealed that it would be buying up to 7 trillion yens worth of bonds per month, beating economist expectations that it would buy 5.2 trillion yens worth. The BOJ officials also temporarily suspended a cap on some bond holdings and dropped a limit on debt maturities.
“The measures announced overall were bold, and more than what had been expected,” said Hiroshi Maeba, from UBS in Japan.”The markets clearly saw that the BOJ did all it can at this point and responded accordingly.”
The new policy decisions were approved after the Banks policy makers passed them with a unanimous vote, a move that commentators believe could mark the beginning of Kuroda’s shift towards more aggressive monetary easing.
Current JPY Exchange Rates
The Japanese Yen to Pound Sterling (JPY/GBP) exchange rate is trading at 0.0069
The Pound Sterling to Japanese Yen (GBP/ JPY) exchange rate is trading at 143.726
The Japanese Yen to Euro (JPY/EUR) exchange rate is trading at 0.0082
The Euro to Japanese Yen (EUR/ JPY) exchange rate is trading at 122.024
The Japanese Yen to US Dollar (JPY/USD) exchange rate is trading at 0.0104
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 95.427
These exchange rates were correct as of 10:00 am
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