Investors were prompted to unwind some of their best bets against the yen, as a response to BoJ 's complacent reaction to the turbulent markets. A direct correlated was observed from the past recent weeks with BoJ's aggressive stimulus last April. However, "When it comes down to it, the BoJ announcement was not the main catalyst for the yen's rise, but rather a general risk-off environment stemming from a slide in higher yielding emerging market currencies," said Vassil Serebriakov, a foreign exchange strategist at Wells Fargo in New York. Most emerging market currencies were Yen funded, availed through the lowest interest rates available in the market.
"The yen has reacted (to the BOJ) but we are fairly neutral about dollar/yen in the short term given there is so much volatility, " expressed one of Barclay's strategist, Chris Walker.
On the other hand, the Euro fell as low as 128.12% to S1.3238 the lowest from the previous 3-month peak of $1.3304. Germany's Economy ministry stated the economy picked up during the 2nd quarter.
The Australian dollar slid to its lowest since September 2010 at $0.9324.
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