JPY Daily News

Yen Continues to Strengthen Despite BOJ Easing

The Bank of Japan's (BOJ) attempt to stem the yen's strengthening looks to be in vain as traders continue to bid up the Japanese currency. Continued risk aversion has traders moving into the yen as a safe haven, pushing the yen to a 15-year high.

The USD/JPY was down sharply at 84.55 after opening the day at 85.38.

The BOJ announced that it will offer Japanese financial institutions 10 trillion yen of loans in new 6-month loans at the basement interest rate of 0.1%. This comes on top of the 20 trillion yen 6-month loans the BOJ had previously been offering.

Despite the new policy that is mean to weaken the yen, the market did not react positively and continued to buy the yen. Traders will now be looking for direct intervention in the currency markets by the BOJ to weaken the yen. Until now, Japan's tough talk and new liquidity provisions have not impressed the markets. The yen should continue to strengthen below its 15-year low versus the dollar at 84.00.

Current Time: 05/27 00:37 GMT

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