Burdened by the yen fall, the dollar was half a percent lower against a basket of its peers at 96.289 having hit set a 2-week low at 96.216.
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The BoJ also held negative interest rates unchanged at -0.1%.
IG’s Joshua Mahony was unsurprised by BoJ undershooting market forecasts, citing the policy calls by European Central Bank and Bank of England this month.
The Bank also established a new facility for lending securities to be pledged as collateral for the U.S. dollar funds-supplying operations.
“The BOJ seems to have had no choice but to ease policy this time as markets had factored in its fresh stimulus measures significantly”.
Japan’s central bank doubled purchases of exchange-traded funds (ETFs) and said it will conduct a thorough assessment of the effects of negative interest rates and its massive asset-buying program in September, suggesting that a major overhaul of its stimulus program may be forthcoming.
The Nikkei 225 index dipped lower on disappointment that the Bank of Japan monetary easing fell short of expectations and the yen strengthened, but stocks recovered to end in positive territory.
The benchmark 10-year JGB yield rose briefly to minus 0.170 percent, its highest since June 24, as the BOJ held off on expanding bond purchases.
Dollar-yen trading took wild swings, triggered by speculative moves before and after the central bank’s announcement after a two-day policy meeting that ended Friday afternoon.
NOT SO ORGANIC: Whole Foods Market fell $3.14, or 9 percent, to $30.50 after the high-end supermarket chain reported that sales declined in the quarter, as the company faces more competition from other supermarkets who have been increasing their organic produce options.
The leading index of 300 European shares rose 0.4 per cent to 1,244 points, and Germany’s DAX also rose 0.4 per cent. It is down 6.7 percent this week and 14 percent this month.
Wall Street shares remained near all-time highs, with tech heavyweights Alphabet and Amazon rising after the bell as their earnings beat expectations. Inflation is expected to reach near target levels of 2% in 2018. Onshore yuan in Shanghai was trading moderately weaker at 6.655 to the USA dollar at 10.40am, 0.01 per cent or 5 points weaker than on Thursday.
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OIL: In the energy market, benchmark US crude fell 42 to $40.72 on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, fell 75 cents to $42.95 in London. France’s CAC 40 was 0.1 percent higher at 4,423. Bullion has risen 1.2 percent in July and is heading for its first weekly gain in three following a gain of more than one percent so far. Brent crude, used to price global oils, fell 56 cents to $42.68 in London.
