(Bloomberg) -- The yen strengthened slightly in the immediate aftermath of the Bank of Japan leaving its benchmark interest rate unchanged in line with expectations.
The Nikkei 225 share index shed some of its advances following the Bank of Japan’s policy meeting after gaining 2.2% earlier. The 10-year Japanese government bond’s yield was unchanged at 0.85% while JGB futures were down 8 ticks at 144.58.
The currency traded up about 0.3% at 142.20 per dollar as of 12:55 p.m. in Tokyo. The BOJ raised its assessment of consumer spending, a key engine of economic growth, and cited the need to monitor financial markets.
Focus will turn to Governor Kazuo Ueda’s post-decision briefing for investors seeking clues on the rates outlook. They have have been sandwiched between relatively hawkish commentary from BOJ policy board members over the past month and market pricing that’s signaled doubt over further rate hikes this year.
The BOJ decision follows a half-a-percenrage-point interest-rate cut from the Federal Reserve that was accompanied by outlook suggesting the pace of cuts may slow. That’s seen the yen whipsaw this week and has left it vulnerable to further volatility.
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