The Bank of Japan's decision to keep rates ultra low caused yen to slide. The Japanese government had to intervene to prop up the currency
The move, which occurred in late Asia hours, saw the dollar plunge more than 2% to around 140.3 yen. There were no subsequent signs of further intervention or help for the BOJ from other central banks and the dollar was last around 1.2% lower at 142.31 yen at 1421 ET/1821 GMT..
"The market was expecting some intervention at some point, given the increasing verbal interventions we have been hearing over the past few weeks," said Stuart Cole, head macro economist at Equiti Capital in London. On Thursday the U.S. Treasury acknowledged the BOJ's move but stopped short of endorsing the intervention.
"You can make the argument that the dollar is too strong and it needs to be weakened, but at this time I think there has been an unofficial understanding from a few years ago that all central banks should refrain from any form of intervention to weaken or strengthen their currency," said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi US.Japanese yen and U.S. dollar banknotes are seen in this illustration picture taken June 16, 2022.
"There's absolutely no change to our stance of maintaining easy monetary policy for the time being. We won't be raising interest rates for some time," Kuroda said after the policy decision.
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