Yen strengthens against greenback after BOJ decision

On Thursday, the Japanese yen managed to surge against its key US counterpart, while Japanese shares dipped when the BOJ decided not to change its current monetary policy at its April gathering. The given move ruined market expectations that the country’s major bank would do something extraordinary to stimulate Japanese economy.   

The BOJ instead voted to keep its current level 1 of asset purchases intact. The same is true for interest rates. Simultaneously, the BOJ announced a ¥300 billion lending program in order to support banks in the regions affected by Kyushu earthquake.

The Japanese yen acquired 2.4% against the greenback, trading ¥108.8770 right after the BOJ’s verdict, thus putting itself on track for the biggest one-day surge since last year’s August.

Nikkei 225 futures gave up revenues from earlier in the day right after the BOJ’s verdict, that took place during lunch break in the stock market. After markets reopened, profits of about 1.6% in the Nikkei 225 transformed into losses of 3.2%.  

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