Yen Muted After BoJ Maintains Monetary Policy, Changes Forward Guidance
October 30 2019 - 09:53PM
RTTF2
The Japanese yen showed muted trading against its major
counterparts in the Asian session on Thursday, after the Bank of
Japan maintained its policy rates, but modified its forward
guidance on interest rates signaling chance of a rate cut in
future.
The Policy Board of the BoJ voted 7-2 to maintain interest rate
at -0.1 percent on current accounts that financial institutions
maintain at the bank.
The bank said it will purchase government bonds so that the
yield of 10-year JGBs will remain at around zero percent.
The bank modified its forward guidance, saying that interest
rates would remain at present or lower levels as long as required
to achieve its price stability target.
Data from the Ministry of Economy, Trade and Industry showed
that Japan industrial production rose a seasonally adjusted 1.4
percent on month in September.
That beat forecasts for an increase of 0.4 percent following the
1.2 percent decline in August.
The yen weakened against its major counterparts on Wednesday,
excepting the greenback.
The yen appreciated to a 6-day high of 108.59 against the
greenback at 9:30 pm ET and held steady in subsequent deals. At
Wednesday's close, the pair was worth 108.83.
The yen held steady against the euro, after easing off slightly
from a 10-day high of 121.47 hit at 8:45 pm ET. The pair had closed
Wednesday's deals at 121.36.
The Japanese yen depreciated to a 1-week low of 140.57 against
the pound, compared to yesterday's closing value of 140.37. The yen
is seen finding support around the 142.5 mark.
The Japanese currency weakened to a 9-day low of 110.19 against
the franc, down from Wednesday's closing quote of 109.99. If the
yen falls further, it is likely to test support around the 112.00
region.
Looking ahead, German retail sales for September, Eurozone
consumer inflation for October, jobless rate for September and GDP
data for the third quarter are due in the European session.
Canada GDP data for August, U.S. weekly jobless claims for the
week ended October 26, personal income and spending data for
September will be featured in the New York session.
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