Yen Makes Small Gain After BOJ Stands Pat, Says It's Watching FX
The yen strengthened slightly in the immediate aftermath of the Bank of Japan leaving its benchmark interest rate unchanged.
Futures on Nikkei 225 pared gains slightly in Osaka after the Bank of Japan's policy meeting. Japanese government bonds were in a regular midday break both for cash and futures trading.
The currency traded up about 0.3% at 142.20 per dollar as of 1:11 p.m. in Tokyo.
The BOJ, which had been expected by economists to stand pat, also said it's necessary to pay due attention to financial markets and foreign exchange markets.
Focus will turn to Governor Kazuo Ueda's post-decision briefing for investors seeking clues on the rates outlook. They have have been sandwiched between relatively hawkish commentary from BOJ policy board members over the past month and market pricing that's signaled doubt over further rate hikes this year.
The BOJ decision follows an outsize interest-rate cut from the Federal Reserve that was accompanied by outlook suggesting the pace of cuts may slow. That's seen the yen whipsaw this week and has left it vulnerable to further volatility.
Source : Bloomberg
