Yen descends steeply after BOJ unveils new policy aims
On Wednesday, the Japanese yen weakened abruptly after Japan’s major bank revealed policy changes and that showed a revolutionary new effort to spur inflation.
The currency pair USD/JPY traded at 102.53, gaining 0.82%. Meanwhile, AUD/USD traded at 0.7546, tumbling 0.13%.
The Bank of Japan revealed complex changes to its monetary policy framework. The country’s major financial institution set a target for long-term interest rates, thus retaining a ¥80 trillion asset purchase plan, though in a drastically rejigged fashion as part of intention to change inflation expectations.
Earlier, Japan reported a trade balance deficit of about ¥19 billion for August, missing an expected surplus of approximately ¥202 billion, with imports down 17.3%,shy of the 17.8% dip observed and exports tumbling 9.6%, compared to a 4.8% decline year-on-year expected.
The US dollar index, normally gauging the greenback’s actual value against six key currencies,leapt 0.25%, hitting 96.21 right after the BOJ announcement.