Yen Rallies As Japan Sells US Treasuries

The Bank of Japan will be announcing their monetary policy decision tomorrow.  Although no changes to rates are expected, all eyes will be on comments from Fukui.  The Bank of Japan is also expected to upgrade their assessment of the economy in their March report.  This is the first step that they need to take to pave the way for a change in monetary policy.  Yet a change will not be immediate.  As recent as today, Finance Minister Tanigaki was on the wires urging the BoJ to stay on track.  He said that recent data indicates that deflation is not over.  Therefore, it is "necessary that the central bank continue to implement effective measures to overcome deflation."  In terms of currencies, he reiterated the government's commitment to take action in the FX market if there are "excessive, speculative moves" in USDJPY.