The yen rose on Thursday after the lows of seven weeks against the u.s. dollar after the Bank of Japan has maintained monetary policy in limbo, following the federal Reserve’s decision to reduce the rate.
The dollar was down 0.37 percent to 108.03 yen at 09.15, after the BoJ has kept the policy in abeyance, as expected, but signalled it could ease in the coming months.
Central banks around the world soften their policy to counter the risks of low inflation and recession.
The Fed has cut interest rates for the second time this year on Wednesday, by 7 votes to 3. The rate reduction was widely expected, but the vote split has raised some concerns with regard to the prediction of the future path of monetary policy.
The Fed chairman Jerome Powell, has described the outlook for the u.s. of “favourable” and the movement rate of “insurance”. He has not ruled out future reductions, but his remarks were not as accommodative as the market had hoped.
The euro rose 0.12% against the dollar, at 1,1042, while the pound gained 0.1% to 1,2480.
Investors await a meeting of the general policy of the Bank of England later Thursday. The BoE is expected to keep rates unchanged, but uncertainty surrounding the Brexit has complicated the outlook for monetary policy.
The australian dollar was down 0.67% to 0,6782 after data showing an unexpected rise in the unemployment rate in the country in August, which argues in favour of an additional raise of the reserve Bank of Australia.
–Reuters contributed to this report