Yen Gains Strength with BOJ on Hold
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iShares MSCI Japan Index (NYSE: EWJ) is expected to open flat today, as shares in Japan showed muted reaction to the bank's policy announcement. However, CurrencyShares Japanese Yen Trust (NYSE: FXY) is expected to open lower following A sizable selloff in USD/YEN, currently trading at 78.80.
Central Bankers in Japan are keeping their gun powder dry ahead of the election in Greece, calling the European debt problems a "risk factor" that requires their attention. Comments were made by BOJ Gov. Masaaki Shirakawa at a press conference after the banks scheduled meeting.
The BOJ left rates unchanged and said it will continue to keep its asset purchase at current levels. If conditions in Europe cause markets in Japan to fall, the BOJ is expected to lean on a number of measures already in place including an increase in the amount of money it spends on asset purchases. The BOJ will also push back against a further decline in the USD/YEN exchange rate.
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Central Bankers in Japan are keeping their gun powder dry ahead of the election in Greece, calling the European debt problems a "risk factor" that requires their attention. Comments were made by BOJ Gov. Masaaki Shirakawa at a press conference after the banks scheduled meeting.
The BOJ left rates unchanged and said it will continue to keep its asset purchase at current levels. If conditions in Europe cause markets in Japan to fall, the BOJ is expected to lean on a number of measures already in place including an increase in the amount of money it spends on asset purchases. The BOJ will also push back against a further decline in the USD/YEN exchange rate.
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