Bank of Japan Announces Quantitative Easing Efforts

The yen is falling in forex trading today as the Bank of Japan announces emergency measures to prop up the economy. While the yen has pared some of its losses, the fact that the BOJ is going to introduce new quantitative easing programs does not bode well for how investors and forex traders view the economy.

However, part of the problem with the yen comes from the fact that some had expected stronger measures. Perhaps, they contend, the Bank of Japan is not doing enough. FX Street reports on the situation with the yen in forex trading:

Speculators expected some sharper measures, such as expanding its government bonds to ease the deflationary pressure. After hitting a 14 year low of 84.82 a week ago, Dollar/yen experienced a fell to 87.00 from a level of more than 87.50 just before the announcement was made. At the moment the Dollar Yen is continuing to maintain its rate at around 87.00.

As an immediate effect to the BOJ’s emergency meeting news about the financial and economical developments the dollar has risen, the euro and the aussie got a 1 percent level higher on the day against the yen.

The risk trade is in favor right now, and that is also weighing on the yen. The euro is higher in forex trading, along with the sterling. Even the dollar remains up against the yen.