The Bank of Japan decided on Friday to hold its monetary policy as it kept interest rates at their lowest levels, remaining at 0.10%, moving in line with market expectations.
The central bank noted that the stimulus program would continue until inflation reaches its target of 2%.
The BOJ stressed that the yen’s appreciation is weakening the chances of recovery in inflation, especially as the Japanese currency is attracting investors as a safe haven in the currency market, thereby prompting the bank to continue with its stimulus program.
The yen fell to a one-week low against the dollar, as the Federal currency recovered on news of a joint meeting between US President and his North Korean counterpart.
Recently, there has been improvement in relations between the U.S. and North Korea, as the later agreed to halt missile tests.
The USD/JPY pair rose to hit a one-week high of 106.94 after opening the session at 106.19, while currently trading around 106.70.
Later in the day, the focus will turn to the US jobs report, which may
signal an increase in the number of new jobs added by American employers to
200,000 in February, and a decline in unemployment rate to 4% from a previous