The Bank of Japan opted against increasing its monetary stimulus program on Friday, prompting the monetary unit of the Pacific Rim nation to advance the most in two weeks against the U.S. dollar, Bloomberg reports.
So too did the Japanese yen climb against the common currency of the European Union, which is falling under greater scrutiny as debt-hampered Greece prepares to conduct its second round of national elections in six weeks. Early May elections in the Aegean nation, which has accepted two tranches of bailout aid since June 2011, were inconclusive and markets are likely to be impacted either way voters cast ballots.
"I think the BOJ will act in July as it assesses developments in Europe," forex and financial products trading chief manager Tsunemasa Tsukada with Mitsubishi UFJ Trust and Banking told The Wall Street Journal.
The central bank left its asset-purchase fund untouched at 40 trillion yen on Friday, which pushed up the value of the Pacific Rim monetary unit against all 16 of its counterpart currencies.
At play in Greece, which is in danger of defaulting on its financial obligations, are austerity measures mandated for the nation to receive bailout aid. Political candidates have presented their ideas as to whether they will abide by those measures.
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