BoJ Decision Influences the Financial Market! This is the market overview that 'Traders' need to know!

<p>&nbsp;The Japanese yen was volatile on Tuesday, it traded lower early after the Bank of Japan (BOJ) kept its ultra-easy policy and then it traded stronger after markets received signals that the final phase of its negative interest rate policy is nearing.</p><p><br /></p><p>The yen, which is sensitive to the rate differential between Japan and other markets, has lost nearly 5% against the US dollar so far as the market dismisses expectations of an immediate US rate cut.</p><p><br /></p><p>BOJ Chairman Kazuo Ueda gave no indication whether the bank would reverse its negative interest rate decision at its upcoming meeting in March or April, as many economists expected. However, he stated that the possibility of Japan achieving the bank's inflation target of 2% is gradually increasing.</p><p><br /></p><p>Elsewhere, the euro slipped 0.06% to $1.0875, as European investors digested a European bank survey for evidence of the extent to which monetary policy tightening has affected the economy.</p><p><br /></p><p><br /></p><p>Polls show lenders continued to tighten access to credit in the final quarter of 2023 but fewer banks did so than two years earlier.</p><p><br /></p><p>Sterling, on the other hand, traded flat at $1.2706, having reached its strongest level against the euro since September, at 85.47 per euro. Britain's main economic news was a smaller-than-expected budget deficit for December, potentially opening up room for tax cuts in the scheduled budget. in March.</p><p><br /></p><p>The US dollar index, which measures the US dollar against six major currencies, traded up 0.07% to trade at 103.187.</p><p><br /></p><p>Reports that China is considering aid for a slumping stock market helped the yuan and the Australian dollar, which is often seen as a proxy for liquidity. Chinese authorities are considering a move to stabilize the stock market.</p>

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