Oh No!! Yen is down ~~

Oh God!! When I woke up today I was expecting the Bank of Japan will alter its interest rates. But alas!!! The Bank of Japan hasn’t changed its interest rates and is holding the same interest rates. This adamant interest rate has taken the yen to fall to its lowest level in four years against the U. S Dollar. The central Bank policy board voted to 3 out of 6 in favor of keeping the Japanese interest rates at 0.25%. Prior to this week, the central bank thought of that it would continue to monitor the consumer prices and personal consumption before deciding whether to raise the Japanese interest rates or not.

There were suggestions that the BoJ had bowed to political pressure from the Japanese government, which was worried that a rate rise could harm the country’s economic recovery. Previously this week the yen has dropped to a thirteen-month low against the dollar and lost its ground against the Euro.

The Swiss franc fell 0.2 per cent to SFr1.2500 against the Euro and dropped 0.3 per cent against sterling. The dollar rose against the Euro after data showed that the US housing starts rose by more than expected in December and US CPI inflation accelerated at its fastest pace for eight months. The dollar climbed to a high of $1.2898 against the single currency. But its gains were wiped out as a rumor swept the market that a US warship had been hit by an Iranian missile in the Arabian Gulf. But the U.S officials denied the rumors.

Well rumors always remain as rumors and never become the facts. But what is the reason behind the Yen’s decline. Let’s know it on Monday