The USD/JPY exchange rate was little changed after the Bank of Japan’s interest rate decision announcement. However, the further reaction on the Bank’s press conference put the pair to a two-month high of 112.70, where the US Dollar strengthened against the Yen by more than 0.15%. Both events managed to keep USD/JPY above the 112.0 level, though the pair returned to the 111.80 area in the early Friday trading session.
The Bank of Japan left the key interest rate at negative 0.1%, as expected, keeping its accommodative monetary policy on the table in an attempt to achieve 2% inflation target without additional stimulus. Meanwhile, the Greenback’s position was determined by speculation over bets that the Fed would raise rates in December.
