The Japanese yen paired with the US dollar is weakening again. The current USDJPY exchange rate stands at 150.11.
The Bank of Japan left the interest rate unchanged at -0.10% per annum at today’s meeting, just as expected.
At the same time, the central bank announced an increase in the flexibility of the yield curve control. The target level for the 10-year bond yield will remain around zero while the upper bound will be set at the 1% mark, which is needed as a reference point.
The BoJ will increase stimulus without any problems if the economy requires it.
The market was not impressed by the statements of the Japanese regulator. The JPY exchange rate is falling because the spread between the interest rates of the Bank of Japan and the US Federal Reserve remains significant.