Dollar-yen climbed to Y81.41 in late trade as risk appetite increased and US stocks rallied to the close, a Nikkei report that Abe would consider changes to BOJ law also seen behind the move. Late trade saw euro-yen lift through Y104.00 to close at session highs of Y104.28. Dollar-yen opened flat in Asia around Y81.30 with trade tied to a narrow range as dealers waited for the BOJ announcement. The pair slipped to session lows of Y81.15 on release after the BOJ left policy unchanged as focus now turns to the upcoming election and impact on BOJ policy. Dollar later bounced to Y81.30 on headlines that said the BOJ to continue seamless monetary easing. Euro-yen slipped sharply after the NY close to Y103.79 on Moody’s downgrade of France by 1 notch, the cross recovered and flirted with Y104.00, before the rate pressed to Y103.81 on the BOJ announcement. Late trade recovered to Y103.95 ahead of Europe.
EasyForexNews Research Team