Intra-Day Market Moving News and Views
05 Feb 2016 02:31GM
USD/JPY - ...... Although dlr 'jumped' from 118.52 to 121.42 last Friday after surprise BoJ's negative rate policy, then to 121.70 in New York, the pair fell sharply this week to as low as 116.53 yesterday.
Reuters reported earlier just days before the Bank of Japan stunned financial markets with its radical adoption of negative interest rates, members of the central bank's own policy board had also been taken by surprise by the move.
Most of the nine board members were only told of the scheme in the week leading up to last Friday's rate review, according to interviews with more than a dozen officials familiar with the deliberations.
The startling speed and secrecy with which such a major policy shift was executed suggest its intent was more about delivering a shock to markets that would weaken the yen, than about maximising the stimulative impact of further easing.
That would be in keeping with the single-minded style of central bank Governor Haruhiko Kuroda, people who know him well or have worked with him say, but could risk entrenching divisions between BOJ policymakers.
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