The pair opened at Y108.78 after last night’s retreat to a Y108.65 low during the US session. Dollar-yen however caught a relatively firm tone since the start of the morning, thanks largely to the US dollar’s recovery. Dollar-yen got up to Y108.94 in early dealings and then pushed through Y109.00 during the mid-morning hours. While the market waited for the BOJ decision, Governor Kuroda was called to testify to parliament earlier today, resulting in a delay in the release of the BOJ’s statement. In parliament, Kuroda said he doesn’t think the yen’s fall so far has had a negative impact. Dollar-yen edgedup through Y109.00 to a Y109.24 high following the comments before holding around Y109.15 before the BOJ decision. Just a few minutes before that, PM Abe was then cited by wires saying the weak yen has hurt companies and households, sparking yet another reversal down in dollar-yen to Y108.75. Finally, the BOJ made its policy announcement, with the outcome largely as expected, and dollar-yen traded near Y108.92, where it has since been held.
