The Japanese yen rose 3 percent against the U.S. dollar on Tuesday after the Bank of Japan (BOJ) modified its yield curve control (YCC) band, allowing long-term government bond yields to trade in a wider range.
The BOJ has decided to raise Japan’s 10-year government bond yields from 25 basis points to 50 basis points as part of efforts to enhance the sustainability of monetary easing, according to its policy statement (pdf).
