Bank of Japan’s ultraloose monetary policy decision causes significant impact on Japanese Yen against the US Dollar

The Bank of Japan (BOJ) decided to keep its ultraloose monetary policy unchanged, which resulted in a fall in the value of the Japanese Yen against the US dollar.

Despite speculation that the central bank would tighten its monetary policy, the BOJ decided to maintain the target band for 10-year Japanese government bonds between plus and minus 0.5%. This decision led to a sell-off of the yen and buying of the dollar, as investors believed that the gap between Japanese and US interest rates would continue to widen.

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The Nikkei Stock Average futures also rose by nearly 3% at one point. BOJ Governor Haruhiko Kuroda will further explain the decision in a news conference later in the afternoon today.