Forex
The Japanese yen touched a four-month high versus the US dollar during early Tuesday trading. The surge came after the Bank of Japan surprised the markets, by announcing a review of its yield curve controls, while also relaxing the limits for its 10-year bond yields. While the announcements don’t, per se, represent an actual resetting of the central bank’s policies, they signal an intention to create an exit strategy from the ultra-accommodative approach that has characterized the BoJ’s stance over the last few years. The news took the markets by surprise, with few expecting such move, which comes only a few months before the end of Governor Kuroda’s 10-year mandate.
