Yen Fluctuates After Bank of Japan's Policy Decision; Dollar Strengthens Amid Federal Reserve Expectations

The Japanese Yen experienced fluctuations on March 19 following the Bank of Japan's decision to maintain its negative interest rate policy, a move anticipated across a broad spectrum. Meanwhile, the U.S. dollar showed resilience, recovering some of its losses amid speculation surrounding the Federal Reserve's monetary policy stance. Post-BOJ announcement, the yen initially weakened against both the dollar and the euro, though trading saw some recovery later. The Japanese currency strengthened slightly by 0.2%, trading at 149.56 against the dollar. Elsewhere, the euro slightly decreased from its previous close, recording at $1.0955, and in recent trading was recorded at $1.0930. The dollar index, which measures the U.S. currency against six peers, rose 0.1% to 103.39, recovering from a five-week low of 103.19. The U.S. dollar has seen a roughly 4% increase this March, influenced by Trump's presidential policies and growing concerns about a broader economic slowdown globally. Investors are closely watching the Federal Reserve's upcoming decisions, with expectations leaning towards maintaining current interest rates.