Yen Edges Lower, Bonds Gain Amid BOJ Policy Uncertainty
- Japanese currency pares 0.8% drop to trade flat against dollar
- Bank of Japan leaves traders guessing on future bond purchases
The yen slumped as much as 0.6% to 157.89 versus the dollar.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
The yen fell and Japanese sovereign bonds advanced after the Bank of Japan said it would reduce debt purchases but delayed providing details until its next policy meeting.
The central bank’s decision to keep its benchmark rate unchanged was widely expected, yet the lack of guidance left traders uncertain around future policy action. The yen plunged as much as 0.8% to 158.26, the weakest level in nearly seven weeks, before paring the move to trade 0.1% lower against the dollar at around 157.22. Benchmark 10-year bonds trimmed an earlier gain, with yields three basis points lower at 0.944%.