The U.S. dollar is getting cheaper against the euro, the pound sterling and the Japanese yen in trading Tuesday afternoon.
The ICE-calculated index showing the dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) lost 0.73% in trading, while the broader WSJ Dollar Index lost 0.64%.
The yen was up 3% against the dollar at 132.73 yen/$1 as of 2:10 p.m., compared with 136.91 yen/$1 at Monday’s market close.
The Japanese national currency was actively growing after the Bank of Japan unexpectedly decided to increase the borders of the band within which the yield of ten-year government bonds may fluctuate to plus/minus 0.5% from plus/minus 0.25% at the end of its regular meeting that ended on Tuesday.
According to the regulator, this decision will improve the stability of the existing monetary policy, but many economists took this step as laying the foundation for the exit from the ultra-soft monetary policy (MP), maintained for a long time, writes Bloomberg.
At the same time, the Bank of Japan left the main parameters of MP unchanged: the short-term interest rate on deposits of commercial banks in the Central Bank remained at minus 0.1% per annum, the target yield on ten-year government bonds – about zero. This coincided with the expectations of most analysts.
The euro/dollar pair is trading at $1.0635 compared to $1.0609 at the close of the previous session.
The pound has fallen in price to $1.2148 against $1.2145 at the close of trading on Monday.
