The Japanese yen marked a second-straight day of gains on Friday against the U.S. dollar after the Bank of Japan committed to doubling the amount of its monetary base as part of the effort to reach the inflation target it has set, Bloomberg reports.
The monetary unit's advance against all of its top 16 counterpart currencies was 0.3 percent in the aftermath of policy makers conducting a meeting on Friday. The body forecast consumer prices will come close to matching its 2 percent target by the next fiscal year.
"The failure at 100 yen has focused people's minds on whether they may have been too optimistic on the near-term prospects for the yen," senior currency strategist Jane Foley with Rabobank told Reuters on Friday. "Today's inflation data suggested the market may have got ahead of itself in its optimism that monetary stimulus will create enough activity in the economy to push up inflation."
Gains for the yen against the U.S. dollar were as high as 0.6 percent.
Bank of Japan Governor Haruhiko Kuroda said no board members with the central bank issued calls for further rounds of monetary stimulus, according to Reuters.
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