Yen Rises After BOJ Decision, Dollar Index Heads for First Monthly Gain This Year

The yen rose slightly today after the Bank of Japan left interest rates unchanged despite raising its inflation forecast for the current fiscal year. The dollar is on track for its first monthly gain this year, supported by the central bank’s guidance.

The yen appeared volatile following the decision before turning decisively, gaining 0.6% in recent trading to 148.60 against the dollar.

The dollar index, which measures the dollar against a basket of major currencies, was last trading at 99.74, not far from the two-month high of 99.987 reached in the previous session. The dollar index is on track for a monthly gain of more than 3%.

The euro rose 0.2% to $1.1424, while the pound fell to last trade at $1.3256. The Australian dollar rose 0.3% to $0.6454, while the New Zealand dollar rose 0.33% to $0.5914.