# Yen surges after surprise BOJ policy tweak | Reuters

> The yen jumped to a four-month high against the dollar on December 20, 2022, on pace for its biggest one-day gain in 24 years. The Bank of Japan surprised markets by widening the band around its 10-year yield target to 50 basis points either side of zero, from 25. Short-term rates stayed at -0.1%.

- Date: 2022-12-20 · published 2022-12-20T12:00:00.000Z
- Category: macro · region Japan · magnitude medium
- Page: https://feedsoft.ai/events/38465-yen-surges-after-surprise-boj-policy-tweak-reuters
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A stronger yen cuts the yen cost of dollar-priced imports and reduces the yen value of US feed-ingredient exports to Japan. The wider yield band also signals tighter financial conditions that could pressure global risk assets.

## Read by commodity

- USDJPY: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/yen-defensive-before-boj-nz-dollar-sinks-2022-12-20/
- reuters.com: https://www.reuters.com/markets/currencies/yen-eases-traders-digest-boj-surprise-policy-tweak-2022-12-21/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.