On Wednesday, the Bank of Japan (BoJ) maintained its ultra-low interest rates, as well as a bond yield cap it was defending against market speculation that it would phase out its massive stimulus program in the wake of rising inflationary pressure, Reuters reported.
At a two-day policy meeting, a unanimous vote kept intact its yield curve control targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield. The central bank also retained its policy that allows the 10-year bond yield to move 50 basis points on either side of its 0% target.
After the decision, the yen sank over 2 percent against the dollar, with the greenback buying more than 131 yen, from about 128.50 earlier in the day.
Meanwhile, the peso strengthened against the dollar, closing at P54.62 per dollar, appreciating by 20 centavos from the previous day’s P54.82, according to data from the Bankers Association of the Philippines.
