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https://edition.cnn.com/2023/07/28/investing/japan...

The Bank of Japan (BOJ) said it kept unchanged its short-term interest rate at minus 0.1% and maintained its target for the yield on 10-year government bond at around 0%.

But the central bank also said it would adopt a more flexible approach to controlling the yield on government bonds ' which affects borrowing costs across the world's third biggest economy, diluting a key pillar of its longstanding ultra-loose monetary policy.

The Japanese yen surged by as much as 1% against the US dollar in response to the BOJ announcement. The Nikkei 225 slumped by as much as 2.6%, before recouping some losses.

'With extremely high uncertainties for economic activity and prices, the bank enhances the sustainability of monetary easing by conducting [yield curve control] with greater flexibility,' the bank said in a statement.

The plot is a foot.

Jeff

I expected a change to yield curve control to push the yen back to the 120s

Instead, it bounced back almost to 144 today, after flirting with 138 for a few days

Currency markets can't seem to make their minds up about anything!

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