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It is banking on the Japanese currency rebounding later in the year, with production and supply activity gradually improving following the country's recent catastrophic earthquake and tsunami.
The decision prompted a fifth consecutive day of losses for the yen against the euro, with Bloomberg reporting that it fell to €117.09 on Friday (May 20th), representing a 0.3 per cent drop.
Mari Iwashita, chief market economist at SMBC Nikko Securities in Tokyo, told the news provider: "Given that policy options are pretty limited, the BoJ probably wants to preserve as much ammunition as possible. Chances for additional easing are still alive."
Earlier this week, US-based currency strategist John Doyle explained to the newswire that the yen had been overbought as a result of the safe haven flow patterns seen in the markets recently.
Posted by Greg Secker
