Japanese Yen Erases Gains, Trades Lower on BOJ Cash Injection
The Japanese Yen is trading broadly lower against its major counterparts, down as much as 0.8 percent on average against its major counterparts, after the Bank of Japan said it will add a record 12 trillion yen in additional liquidity into the financial system to lower borrowing costs and dampen the economic cost of the largest earthquake in the island nation’s history. Downward pressure was compounded by speculation of additional support measures to emerge out of the BOJ’s monthly policy meeting set to begin today with an announcement due tomorrow. The Yen opened the week on a firm note, rising as much as 1.4 percent against the majors as Japanese shares plunged, boosting repatriation flows into the safety-linked currency.
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