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Yen Rises As BOJ Keeps Policy Steady

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The Japanese yen strengthened against other major currencies in the Asian session on Thursday after the Bank of Japan kept its monetary stimulus unchanged as widely expected.

Governor Haruhiko Kuroda and his board members decided by a 7-2 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion.

The bank will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.

The board also decided to maintain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.

Wednesday, the yen showed mixed trading against its major rivals. While the yen rose against the euro, the U.S. dollar, and the Swiss franc, it fell against the pound.

In the Asian trading, the yen rose to a 1-week high of 138.94 against the pound from yesterday's closing value of 139.34. It may test resistance around the 138.00 region.

The currency edged up to 113.26 against the U.S. dollar, from an early low of 113.54. This may be compared to an early more than a 2-week high of 113.16. It is likely to find resistance around 112.00.

Against the euro and the Swiss franc, the yen advanced to 121.49 and 113.28 from yesterday's closing quotes of 121.68 and 113.37, respectively. If the yen extends its uptrend, it is likely to find resistance around 120.00 against the euro and 111.00 against the franc.

Looking ahead, at 4:30 am ET, the Swiss National Bank's interest rate announcement is due. The central bank is expected to maintain the LIBOR rate at -0.75 percent.

Eurozone CPI data for February is due to be released at 6:00 am ET.

At 8:00 am ET, the Bank of England will announce its interest rate decision. Economists expect the bank to retain interest rates unchanged at 0.25 percent and asset purchase target at GBP 435 billion.

In the New York session, U.S. housing starts and building permits for February, U.S. weekly jobless claims for the week ended March 11, and U.S. Federal Reserve Bank of Philadelphia's manufacturing index for March are slated for release.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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