FX & CFD trading involves significant risk
05:00 Japan BoJ meeting announcement 0.00-0.10% 0.00-0.10%
The yen weakened against all its major counterparts after Japan sold its currency in the foreign- exchange market for the first time since March to stem gains that threaten the nation’s economic recovery.
The yen slumped more than 3% against the dollar, the biggest intraday drop since March, after the Bank of Japan followed its Swiss counterpart in easing monetary policy.
Japanese Finance Minister Yoshihiko Noda said today’s intervention was one-side.
“Intervention will be more effective if it comes with monetary easing,” said Kazuo Kitazawa at Credit Suisse Group AG. “I can’t say intervention is successful until the yen depreciates beyond 80 against the dollar.”
The Bank of Japan expanded its asset-purchase fund to 15 trillion yen ($189 billion) from 10 trillion yen, according to a statement. Policy makers also kept the benchmark interest rate near zero. They ended their meeting a day earlier than scheduled on request of the government.
The franc fell for a second day after the Swiss National Bank cut interest rates to zero yesterday.
The Swiss National Bank yesterday lowered its target from 0.25%.
The franc has gained 9.2% over the past month. The yen has risen 0.9% and the dollar has fallen 0.9%, the indexes show.
Meanwhile, gains in the dollar were tempered before U.S. reports today and tomorrow that economists said will show initial jobless claims rose and the unemployment rate stayed above 9%.
EUR/USD rose to $1.4344 after it earlier tested lows on $1.4140. Later rate recovered decline and weakened to $1.4245/50.
|remaining time till the new event being published|
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.