The Japanese Yen fell today after BoJ kept its monetary policy unchanged, with the USDJPY rising to a daily high of 111.15. Comments from Kuroda, Governor of BoJ dampened speculation that the Bank would reduce monetary stimulus like some other central banks. Following Kuroda’s commitment to the easing policy and statement that there is still some time to achieve the inflation target, the yen rose again to the levels of 110.60 against USD.
The Yen benefited greatly when the Bank of Japan cut its purchases of government bonds earlier this month, sparking speculation that the bank will exit the broad monetary stimulus program.
All this comes after the US Senate reached an agreement to end the three-day government shutdown, which helped the US dollar to erase some of its losses from the past few days, yet the dollar remains at its lowest level in nearly 3 years against a basket of currencies, with the dollar index trading at 90 levels. The House of Representatives approved short-term funding for the government until Feb. 8, after it received enough support from the Senate.
The pound reached the 1.40 levels for the first time since Britain voted to exit the EU following French President Macron’s comments that Britain is able to reach a detailed agreement with the EU on its exit. The pound retreated slightly against the US dollar before rising again, especially as the pair has been moving in a bullish trend since the beginning of last year and has accelerated recently.
