The Bank of Japan has finally stepped away from some components of its aggressive monetary policy which began in 2013. Since 2016, the BoJ has committed to keep the 10-year bond yields around zero. Here are the important takeaways from the March BoJ meeting. The BoJ will now finally allow the 10-year bond yield to oscillate in a larger range than previously, ±0.
Anyone who has been following the Currency Market would know that the US Dollar weakness has been a dominant theme since the second quarter of 2020. Dovish FED, loss of safe haven appeal following the recovery in global risk appetite and economic damage from the pandemic, all led to the deterioration of the fundamental landscape for the US Dollar.