The yen rallied after swinging wildly as the Bank of Japan announced an adjustment to its yield-curve control program that invites further buying of the currency.
It jumped as much as 1% to 138.07 per dollar after weakening by about the same amount in a volatile hour of trading in wake of the BOJ’s policy statement Friday. Pressure had been mounting on the central bank to alter the policy amid elevated inflation and improved wage growth in Japan.
Japan’s benchmark 10-year yield surged 13.5 basis points to 0.575%, with the move supportive of the currency. The Nikkei 225 stock gauge dropped while bank shares rose on expectations of better margins.
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