The Yen started recovering. Overview for 19.03.2021
USDJPY is falling on Friday after the meeting of the Bank of Japan.
The Japanese Yen is strengthening against the USD at the end of the trading week. The current quote for the instrument is 108.83.
Following its two-day policy meeting that ended today, the Bank of Japan made a decision to keep the current rate unchanged at -0.1% and said it would only buy exchange-traded funds (ETF) that are linked to the Topix index. The BoJ said it would buy up to 12 trillion Yen at most and also slightly broadened a trading band for its 10-year bond yield target, widely as expected.
The Central Bank also said it would decrease up to 6 trillion a year but keep the option to buy up more if necessary open. Even after the pandemic dies out, the program wouldn’t be closed as it provides good support to the country’s economy.
At the moment, the BoJ's stock holdings are worth more than $450 billion, which means that the regulator is the biggest stockholder on the Japanese stock and debt markets.
The inflation target of 2% wasn’t revised but it’s quite obvious that the Japanese regulator has a long way to go before the CPI fixes above 1.5% at least.
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