Japanese Yen Slumps As BOJ Announces Bond Buying, JPYINR Melts Around 2%

Published on Jul 31, 2023 12:44

The Japanese Yen slumped against the Indian Rupee today as the currency took a hit in global markets following a new policy paradigm and a decision by the Bank of Japan today undermining its own decision on Friday. The Bank of Japan today announced a special open market operation to buy 300 billion yen of Japanese government bonds, the first such purchase since February this year as long-term yields jumped. This led to a collapse in the Yen as the USDJPY pair jumped to a three week high above 142 mark and currently quotes at 142.04, up 0.63% on the day. The 10 year Japanese Government bond yield shot up to nearly nine year high of 0.60% as it extended its wild upmove from Friday. The BOJ has immediately swung into the action and its attempt to influence the yields is leading investors bet against the Yen. The JPYINR futures on the NSE tanked after a sideways movement in first couple of hours of trade and currently quote at 58.30, down 1.89% on the day. With this tumble, the pair has given away a chunk of the heavy gains seen in last few days.