Yen holds big gains after sudden change in BOJ’s policy

The yen stabilized today, Wednesday, after jumping nearly 4 percent in the previous session, when the Bank of Japan unexpectedly adjusted one of its main policies, giving government bond yields an opportunity to rise.

According to “Reuters”, the Bank of Japan modified its policy to control the yield curve on Tuesday, while leaving its broader policies unchanged.

The yen rose less than 0.1 percent in its latest transactions on Wednesday, to reach 131.55 yen per dollar, not far from its highest level in four months of 130.58 yen per dollar, which it recorded on Tuesday, when it jumped 3.8 percent, in its largest daily increase since 1998.

The euro rose 0.11 percent against the dollar to $1.063, while the pound sterling fell 0.25 percent to $1.216.

The Australian dollar lost 0.1 percent, recording $0.667, while the New Zealand dollar fell 0.89 percent, to $0.629.

The dollar index, which measures the performance of the greenback against a basket of major currencies, fell less than 0.1 percent on Wednesday to 103.89, but is still up almost eight percent this year.