Yen edges lower as BoJ remains committed to monetary easing

Yen fell in European trade against dollar for the second session, plumbing seven-week lows after the first meeting by Bank of Japan under new governor Kazuo Ueda, which was in line with expectations. 

The BoJ asserted its commitment to ultra-easy policies and to maintain interest rates ultra low, while reviewing such policies over the next year and a half. 

USD/JPY rose 1.45% to 135.85, the highest since March 10, after the yen slid 0.25% against dollar on Thursday, the first loss in three days on profit-taking  off two-week high at 133.02. 

Bank of Japan

Bank of Japan at its first meeting under new governor Kazuo Ueda maintained interest rates at the record low of minus 0.1%. 

The BoJ also decided to maintain targets for 10-year treasury yields at zero, and overall maintaining policies unchanged to support economic recovery in the country. 

Reviewing Policies in the Future

The BoJ decided to conduct large-scale reviews for monetary easing measures in the next year.

The bank said that achieving price stability has proved challenging for the past 25 years, and that monetary easing policies impacted a wide sector of the economy and the financial sector. 

The BoJ decided to remove future directives and pledges to maintain rates at current levels, while asserting it'll keep expanding the monetary base until consumer prices reach the 2% target.