NEWS / Foreign Exchange

BOJ keeps policy unchanged

The Bank of Japan left monetary policy unchanged at a board meeting on Tuesday, keeping the overnight call rate target at 0.50 % as widely expected by financial markets.

The decision by the nine-member board was unanimous.

YEN falls, Nikkei rise

The yen hovered near a 2-1/2-week low against the euro and held steady against the dollar after slipping on Monday.

The yen has rallied since late February as a sell-off in global stock markets prompted investors to shy away from risk and unwind yen carry trades, in which investors sell the low-yielding yen and buy higher-yielding currencies and assets.

The Nikkei rose 1.05 %, helping soothe jitters over a further unwinding of such short yen positions and encouraging expectations that investors may return to selling the yen against higher-yielding currencies.

With Tokyo share prices seen opening higher following a rally in U.S. shares on Monday, the yen seems likely to stay pressured.

Asian markets rise

Asian stocks rose on Tuesday with Japanese exporters such as Honda Motor boosted by a weaker yen while higher base metal prices helped lift the miners.

Markets were also bolstered by gains in their U.S. peers, which drove the blue-chip Dow Jones Industrial Average up nearly 1 % - its second-best performance this year.

EURJPY traded between 156.10 and 156.97