YEN TUMBLES PAST 148 PER DOLLAR AS BOJ STANDS PAT ON RATES; JPYINR DOWN HALF A PERCENT

Published on Sep 22, 2023 14:23

The Japanese yen tumbled to its lowest level in nearly a year on Friday after the Bank of Japan (BOJ) maintained a dovish stance on monetary policy. The Japanese central bank kept its ultra-loose policy settings and maintained the target around 0% and the cap of 1.0% for the 10-year bond yield. However, inflation staying above the central bank`s target and yen plummeting to near 150 could prompt the BoJ to reverse its policy stance. Data released earlier Friday showed Japan`s core inflation rose to 3.1% on-year in August, higher than the 3.0% expected, staying above BOJ`s 2% target. Besides, strength in dollar index, hovering at six month high of 105.28 is also adding pressure on the Japanese currency. USDJPY is quoting at 148.34, up 0.5% on the day and at a level last seen in October 2022. Meanwhile, on the NSE, JPYINR September futures are currently seen trading at 55.94, down more than half a percent on the day.