June 11 Tuesday 10:40 GMT
Dollar-Yen fell 197 points to 96.48 from 98.45 in Europe on extended losses as the Japanese Yen gained against most of the major currencies following the BOJ monetary policy announcement at 2:48am GMT. Euro-Yen fell 251 points to 128.12 from 130.63. Stocks fell from Tokyo to Europe. Nikkei fell 1.45% to 13,317, FTSE -1.49% to 6,305, German Dax -1.52% to 8,181 as of 10:00 GMT.
The Bank of Japan kept its monetary base target unchanged at an annual pace of 60-70 trillion yen at the conclusion of its two-day meeting. The BOJ announcement gave disappointment to market participants who expected additional easing measures from the BOJ.
The BOJ refrained from taking new policy measures on extending the term of low fixed rate bank loan maturities to the anticipated two year term from the current one year. The move was viewed to give calm to the recent bond market volatility that posed as a significant risk to Japan’s economic recovery prospects. BOJ governor Haruhiko Kuroda said that the board saw no need to add funds longer than one year.
Rising bond market yields have already pushed up mortgage rates raising concerns that further rise in yields could increase other borrowing costs. The 10-year JGB yield rose 4.5 basis points to 0.88%.
The 30-day moving average for Dollar-Yen fell from 98.30 to 97.00. Both the 30 and 60 day converged at the 98.20 level, was broken as well. The 60-day average fell to 97.50.