Yahoo Finance Yen Rises against Dollar After BOJ Holds
Investing.com - The yen rose from a seven week low against the U.S. dollar on Thursday after the Bank of Japan kept monetary policy on hold, in the wake of the Federal Reserve’s overnight decision to cut rates.
The dollar was down 0.44% to 107.95 yen by 2:32 AM ET (6:32 GMT) after the BoJ kept policy on hold, as expected, but signaled it could ease next month.
Central banks around the world have been loosening policy to counter the risks of low inflation and recession.
The Fed cut interest rates for a second time this year on Wednesday in a 7-3 vote. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy.
Fed Chairman Jerome Powell described U.S. prospects as "favourable" and the rate move as "insurance." He did not rule out future cuts, but his remarks were not as dovish as markets had hoped for.
The euro rose 0.1% against the dollar to 1.1045, while the British pound was little changed at 1.2468.
Investors are awaiting a Bank of England policy meeting later Thursday. The BOE is expected to keep rates unchanged, but uncertainty over Brexit has complicated the monetary policy outlook.
The Australian dollar was down 0.6% at 0.6786 after data overnight showing that the country’s unemployment rate unexpectedly rose in August, underlining the case for additional stimulus by the Reserve Bank of Australia.
--Reuters contributed to this report
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