The Yen weakened the most against the greenback in more than three years as the Bank of Japan announced it would implement new stimulus measures in an effort to fight deflation. This bolstered speculation that the exchange rate will continue to drop, especially as central bank officials stated that they would begin purchasing 7.5 trillion Yen ($77 billion) per month. Japan’s currency remained on a downward trend despite a release which revealed that U.S. payrolls only grew by 88,000 workers.
Meanwhile, The U.S. Dollar declined against the Euro by the most in close to 12 weeks after the U.S. reported that employers hired fewer workers than anticipated, supporting the belief that the Federal Reserve won’t put an end to the asset-purchasing program any time soon. Subsequent to the jobs release, the Institute for Supply Management revealed that the index of U.S. service industries expanded at the slowest rate in seventh months in March.
The Euro rate climbed further as the European Central Bank stated it would leave benchmark interest rates at 0.75%. The President of the ECB, Mario Draghi, said that policy makers are “ready to act” in the event the Euro-zone’s economy shows signs of slowing down.
Other foreign currency exchange news showed that the British Pound rebounded from a two-week low against the U.S. monetary unit after industry data confirmed that U.K. services output grew more than anticipated last month. Also, the Bank of England left the key cash rate at 0.5%.