>>16165819 pb
>Muh Yen 128.37 +1.14 0.90% still heading to it's inevitable meeting with 130 and last weeks small dip just put it off for a short time.
BOJ stands pat, sending yen to 20-year low against dollar
The Bank of Japan on Thursday decided to keep its loose monetary policy intact, despite the weakening of the yen and growing pressure of inflation due to costlier imports.
The yen stood at 128.68 against the dollar at noon Japan time….and went higher see cap #2
The results of the monetary policy meeting were announced minutes later. Rather than introducing flexibility to its monetary policy, the central bank in a statement reiterated its commitment to the 10-year yield target, saying it will conduct an unlimited fixed-rate operation to buy 10-year Japanese government bonds at 0.25% every day. The announcement sparked a fresh round of yen selling, sending the Japanese currency to a 20-year low of around 129.70 against the dollar at one point.
In a separately released economic outlook report, the board members offered a median forecast of 1.9% for inflation for the fiscal year that started this month, compared with 1.1% predicted three months ago, and 1.1% for the next fiscal year, versus the previously predicted 1.1%. Economic growth is forecast at 2.9% for the current fiscal year, versus 3.8% predicted three months ago. The meeting was held as inflationary pressure grows for commodities and a wide range of other goods, from fuel and food to apparel and appliances. In March, Japan's consumer inflation rose 0.8% from a year earlier, the biggest increase in 26 months. Inflation is widely expected to top 2% in April, when the effect of one-off cuts in mobile phone fees disappears.
The rising inflation has put the BOJ's monetary policy in sharp focus. The policy was supposed to help stimulate the economy, but it has sparked a sharp depreciation of the yen and exacerbated inflation caused by the COVID pandemic, the Russian invasion of Ukraine, and resulting disruptions to trade and economic activity. Since the U.S. Federal Reserve started raising rates on March 16, the yen has fallen from 118 to 127 versus the dollar, hitting a 20-year low of 129 at one point, as investors moved out of yen and into dollars for better investment yields. The Fed will hold its next policy meeting on May 3 and 4 and is widely expected to raise rates by half a point. The BOJ has found itself caught between a rock and a hard place. If it sticks to the loose monetary policy, it will exacerbate import-driven inflation. If it raises rates, it could hurt Japan's sluggish recovery from COVID. In the run-up to the policy meeting, the BOJ announced that it would conduct an unlimited fixed-rate operation to buy 10-year bonds on Wednesday and Thursday, the very days of the meeting. Until the announcement, there had been attempts to test the bank's resolve to defend the 0.25% 10-year yield band. Afterward, market players took it as signaling a continuation of the status quo.
https://asia.nikkei.com/Economy/BOJ-stands-pat-sending-yen-to-20-year-low-against-dollar
https://www.marketwatch.com/investing/currency/usdjpy?mod=mw_quote_switch