The USDJPY pair is floating around the 118.70 price range after taking a new six-year high at 119.12 as the Bank of Japan has kept the interest rate unchanged at -0.1%. The decision of maintaining the status quo is very much in-line with the expectations of the market’s participants. A minor correction has been witnessed in the asset post the announcement, which may be recovered soon amid the overall positive picture.
The BOJ Governor Haruhiko Kuroda has chosen to stick to an unchanged policy led by capped inflation number in Japan. The Japan’s Statistics Bureau has reported that the yearly National Consumer Price Index (CPI) at 0.9%, much higher than the previous print of 0.5% and market consensus of 0.3%. Despite the elevated print, Japan’s inflation is well below the upside cap of 2%. Meanwhile, the National CPI ex-fresh food has landed at 0.6% in line with the street estimates but higher than the previous figure of 0.2%.
On the other side of the pond, the US dollar index is trying to become stable around 98 after a sharp fall of 1.5% this week. The elevation of interest rate by 0.25% from the Federal Reserve (Fed) has weighed pressure on the greenback. Investors were expecting an aggressive interest rate hike to corner the inflation mess but a measured attempt to contain the inflation stopped to excite the market participants.
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