Yen Rises After BOJ Meeting; U.S. Dollar Slips as Fed Cut Rate as Expected
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Investing.com - The Japanese yen rose against the U.S. dollar on Thursday in Asia following the conclusion of the Bank of Japan’s meeting.
The USD/JPY pair fell 0.6% to 107.79 by 11:52 PM ET (03:52 GMT). The Bank of Japan kept its short-term rate target at -0.1%, but noted in a statement that “it is becoming necessary to pay closer attention to the possibility that the momentum towards achieving its price target will be lost.” BOJ governor Haruhiko Kuroda will provide a briefing later in the day.
"Taking this situation into account, the BOJ will re-examine economic and price developments at its next policy meeting, when it updates the outlook for economic activity and prices," it said.
The U.S. dollar index slipped 0.1% to 98.058 after the Federal Reserve lowered its interest rates to the 1.75-2% range from the previous 2-2.25%. The move, which was widely expected by analysts, was the second rate cut this year.
The AUD/USD pair was down 0.5% to 0.6790 following mixed jobs reports released in the morning.
The NZD/USD pair lost 0.1% to 0.6312 after data showed the country’s economy grew at the slowest pace in more than five years in the second quarter.
The GDP grew by only 2.1% from a year earlier and was the weakest annual growth since the fourth quarter of 2013, Statistics New Zealand reported on Thursday.
The New Zealand dollar initially rose after the report, but gave back its gains and currently trades in the red.
The USD/CNY pair rose 0.3% to 7.1029.
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