TechFlow, Sept 19 — According to Jinshi Data, analysts said the yen strengthened broadly against G10 and Asian currencies after the Bank of Japan unexpectedly sent hawkish signals.
Matt Simpson, Senior Market Analyst at StoneX, pointed out that although the central bank kept interest rates unchanged as expected, it announced the start of reducing its massive holdings of ETFs and REITs.
"This marks a significant symbolic step away from the era of ultra-loose policy under Abenomics," he said. "The key takeaway is that the BOJ has officially begun shrinking its unconventional asset holdings." Simpson added this could also be a precursor to a rate hike in October.
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