BEIJING: The yen rose from near a two-week low against the dollar after the Bank of Japan refrained from adding to already unprecedented stimulus at a policy meeting.
Japan’s currency gained versus all except three of its 16 major peers after central bank Governor Haruhiko Kuroda kept a pledge to expand the monetary base at an annual pace of 80 trillion yen ($668 billion), as forecast by all 34 economists in a Bloomberg survey. He remains far from achieving his 2 percent inflation target, with the central bank’s main gauge sinking to zero on cheaper oil and a weak economic recovery.
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“If they are going to ease, it’ll be once we’ve had further evidence of what’s going on in the economy,” said Chris Weston, chief market strategist in Melbourne at IG Australia, a unit of IG Group Holdings Plc. “The Bank of Japan are happy to see a slower depreciation of the yen.”
The yen rose 0.4 percent to 119.80 per dollar at 2:02 p.m. in Tokyo from Tuesday, following a two-day 1.1 percent decline. It advanced 0.1 percent to 129.94 per euro after weakening as much as 0.2 percent before the BOJ announcement.
