The Japanese yen depreciated, reaching around 150 per US dollar, its weakest level in about two weeks, despite the Bank of Japan's decision to raise interest rates from -0.1% to 0%.
The Bank of Japan abandoned its yield curve control policy, ceased targeting 10-year bond yields, stopped asset purchases, and plans to gradually reduce its purchases of commercial papers and corporate bonds, aiming to halt these purchases within a year.
Analysts suggest the yen's further weakening post-announcement was due to the market anticipating the move as overdue.
The anticipation of this policy change reveals a complex interplay between monetary adjustments and market expectations, impacting the yen's value.