The yen fell after the Bank of Japan’s adherence to the ultra-easing policy

The Japanese yen fell on Wednesday after the Bank of Japan kept interest rates very low, disappointing some investors who had hoped the bank would adopt more policy adjustments.
The Bank of Japan surprised the market last month by raising its yield cap on 10-year bonds to 0.5% from 0.25%, doubling the range it allows above or below its zero target.
Since then, speculation has been rife that the Bank of Japan is likely to adjust its yield curve control policy further.
The Japanese yen fell 2.06 percent against the dollar at 130.80 per dollar on Wednesday, the largest one-day percentage decline since June.
The dollar index, which measures the performance of the US safe-haven currency against six other major currencies, rose 0.352% to 102.750.
The yen incurred significant losses, as the euro rose against it by 2 percent to 141.1 yen, and the British pound rose by more than two to 160.71 yen. The Australian dollar rose 2.2 percent and the Singapore dollar rose 1.9 percent against it.
Against the US dollar, the pound sterling was last recorded at $1.2261, down 0.22% on the day, while the euro fell 0.12% to $1.0775.
The Australian dollar rose 0.20% to $0.700, while the New Zealand dollar rose 0.45% to $0.646. (Reuters)