The Bank of Japan decided to keep the policy rate unchanged. USD/JPY shows no clear direction.

【10/30Market Overview

Tokyo time, the dollar/yen fell to the mid to low 157s amid a sharp drop in the Nikkei and after-hours U.S. Treasury yields dropped10to the157.19yen level. Subsequently, the Bank of Japan, at its Monetary Policy Meeting, kept policy unchanged as the market expected1.25%. Governor Kuroda stated that “the outlook for prices carries greater upside risk” and that “for future rate hikes, decisions will be made at each forthcoming meeting by assessing the outlook and risks,” but market reaction was limited. In European hours, dollar/yen traded in a range around the157yen area in the lower to upper 157s.NYtime, pressured by declines in U.S. and global stock indices, there was a rush to buy yen and sell dollars, with dollar/yen briefly touching156.95yen, before being bought back to157.64yen.

【11/2Market View