According to BlockBeats, the Japanese yen has strengthened against G10 and Asian currencies after the Bank of Japan unexpectedly released hawkish signals. Senior market analyst Matt Simpson from StoneX noted that while the central bank maintained interest rates as expected, it announced a reduction in its substantial holdings of ETFs and REITs.
Simpson emphasized that this move marks a significant symbolic step away from the ultra-loose policies of the Abenomics era. He highlighted that the key point is the Bank of Japan's formal initiation of reducing its unconventional asset holdings. Simpson also suggested that this could be a precursor to a potential interest rate hike by the central bank in October.