The yen fell by 0.9% after the Bank of Japan left the ceiling on the yield of 10-year bonds at 0.5% and the short-term interest rate at minus 0.1% at the first meeting under new Governor Katsunori Kuroda. The Bank of Japan also announced a review of its policy, which could take up to 18 months
According to the Bank of New York Mellon, in the coming weeks, the yen could fall to a level of 140 against the dollar.
As stated by Mark Matthews, head of Asian research at Julius Baer: “At the next meeting, which is scheduled for June of this year, or possibly earlier, the Bank of Japan plans to adjust its policy for controlling the yield curve. The yen will become stronger against all other currencies, including the dollar”.
