The euro was quoted at
The dollar rallied against the yen in afternoon trading after the BOJ said it would extend its special loan support funding program for one year and double the size of fund provision to encourage banks to boost lending to business with growth potential, which could be interpreted as a kind of additional monetary easing policy.
"Some market players bought the dollar as they just thought 'the BOJ did something.' They did not seem to estimate how effective it would be," said
He added that the effect of the central bank's decision is questionable as the problem is there is not enough fund demand even if the framework for loan money would be bolstered.
The U.S. currency retreated to the mid-102 yen range following BOJ Governor
Earlier in the day, some foreign market participants sold the yen for the dollar apparently in anticipation of additional monetary easing ahead of the conclusion of the central bank's meeting, dealers said.
"Some foreign market players appeared to be anticipating additional monetary easing policies following the weaker-than-expected gross domestic product data released the previous day," said Daisuke Karakama, market economist at
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