28 Mar 2022
Dollar Rises as Yen Plummets amid BOJ’s Resuming Dovish Standpoint
The Index Today
The U.S. dollar rose on Monday, gaining against the Japanese yen due to the monetary policy differences between both the countries.
The USD/JPY pair edged higher by 1.2% to 123.47 by 3:01am ET, achieving the highest levels since December, 2015, rising by more than 7% in the previous month.
The Dollar Index rose by 0.4% to 99.218 at 3am ET (0700 GMT). The Bank of Japan has adopted a dovish attitude again after it announced its offer to purchase an indefinite number of 10-year Japanese government bonds at 0.25%. This comes in stark contrast to the central bank in the U.S. with the Federal Reserve opting for an increasingly aggressive tightening of monetary policy to control soaring pandemic-induced inflation.
The Fed, which raised interest rates by a quarter point on March 16, is set to implement six additional rate hikes this year with Chair Jerome Powell hinting that the central bank is prepared to increase interest rates by a half point percentage if required.
©Photo: REUTERS/Cagla Gurdogan