The Japanese yen, the British pound, and the euro are going nuts.
As of 10:46 a.m. ET:
- The yen is stronger by 2.1% at 103.83 per dollar. The pound is plunging by 1.2% at 1.4038 against the dollar. The euro is down by 1.1% at 1.1138 against the dollar.
Earlier in the day, Japan’s central bank voted 7 to 2 in favor of keeping its benchmark interest rate unchanged at -0.1%. Plus, members voted 8 to 1 in favor ofexpanding the monetary base at an annual pace of around 80 trillion yen.
“Global financial markets have remained volatile,” the bank wrote in a statement. “Therefore, due attention still needs to be paid to the risk that an improvement in the business confidence of Japanese firms and conversion of the deflationary mindset might be delayed and that the underlying trend in inflation may be negatively affected.”
As for the rest of the world, here’s the scoreboard:
- The US dollar index is stronger by 0.7% at 95.31 after the Fed left rates unchanged on Wednesday. Additionally, CPI, initial jobless claims, and Philly Fed manufacturing all cross the wires at 8:30 a.m. ET. The Swiss franc is weaker by 0.7% at .9677 after the Swiss National Bank held rates and once again noted that the currency is “significantly overvalued.” The Indonesian rupiah is down by 0.6% at 13,410 per dollar after Bank Indonesia cut both its reference rate and 7-day repo rate by 25 basis points each, bringing them to 6.50% and 5.25%, respectively.