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Forex Trading: Japanese Yen plummets on BOJ monetary policy

Posted by Chris Advincula on Apr 4, 2013 6:36:00 AM

April 4 11:00GMT

The Bank of Japan announced a larger-than-expected economic stimulus measure that sent the Japanese yen lower against all its counterparts by 1.8 percent across-the-board.

The Bank of Japan governor Haruhiko Kuroda and his policy makers announced a surprise monetary policy to double its monthly bond purchases and adopted a two-year time frame to achieve their 2 percent annual inflation goal.

The BOJ board said that it will buy 7 trillion yen of bonds per month, exceeding the median estimate of 5.2 trillion yen. The BOJ also temporarily suspended a cap on some bond holdings and dropped a limit on debt maturities at the conclusion of its two-day meeting, the first to be led by Kuroda since he took office last month.

Dollar-yen rose sharply by 282 points to 95.67 from 92.85 while Euro-yen rose 345 points to 122.70 from 119.25.

 

Chris Advincula

WorldWideMarkets 

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Charts: FXTrek.com

 

 

 

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