The yen sank to the 156 level against the US dollar Friday after the Bank of Japan left its policy rate unchanged and said it will continue bond purchases in accordance with its decision last month.
The Japanese currency fell to a new 34-year low after hovering in the upper 155 zone in the morning, while the Nikkei stock index added nearly 500 points.
The markets’ reaction came after speculation had emerged that the BOJ could reduce bond purchases following a news report that the bank was considering ways to taper its bond buying at the policy meeting.
Financial data screens in Tokyo show the US dollar rising above the 156 yen line on April 26, 2024. (Kyodo)
At 1 pm, the dollar fetched 155.93-96 yen compared with 155.59-69 yen in New York and 155.62-64 yen in Tokyo at 5 pm Thursday.
The 225-issue Nikkei Stock Average rose 287.55 points, or 0.76 percent, from Thursday to 37,916.03 at 1 pm
Related coverage:
BOJ keeps short-term rates unchanged at policy meeting
Japan ready to take necessary steps on yen movements: finance chief
Dollar at 34-yr. highs in upper 155 yen as intervention line tested
