The Japanese yen weakened back to a two-week low against the dollar after the Policy Board of the Bank of Japan at the Monetary Policy Meeting held today decided by a unanimous vote, to encourage the uncollateralized overnight call rate to remain at around 0.5 percent. BoJ said that it is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices. In particular, with firms' behavior shifting more toward raising wages and prices recently, exchange rate developments are, compared to the past, more likely to affect prices, the central bank noted. USDJPY pair is currently quoting at 149.60, up 0.17% on the day after having hit an over 5-month low last week on expectation of hawkish BoJ. Moreover, greenback is attempting to firm from a near 5-month low ahead of FOMC due later in the global day. Meanwhile, on the economic front, Japan posted a merchandise trade surplus of 584.5 billion yen in February, the Ministry of Finance said.
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