Yen drops as BoJ slashes rates below zero

Currency weakens after Bank of Japan announces intensified battle against ‘deflationary mind-set'; the yen will continue to lose ground to the US dollar, analysts say

Surprise hand: the 5–4 decision marks a new chapter in the BoJ's efforts to reverse persistent deflation

The yen fell from 118.5 to 121.5 against the US dollar today (January 29), after the Bank of Japan (BoJ) cut interest rates below zero in a surprise move that further expands its monetary stimulus programme.

The drop, which analysts failed to predict, reversed the gains prompted by safe-haven inflows at the start of this year.

"I expect we will be seeing USD/JPY edge up towards 1.22, 1.23 next week," said Gerrard Katz, chief FX strategist for Asia at Scotiabank in Hong Kong, who described today

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: