The dollar went up today spiraling today to a three-week high against the Japanese yen. This happens as the Bank of England went against the expectations of many investors in announcing that it would still delay its hike in interest rates. As against what many analysts had predicted in the market, the Bank of England announced rather unexpectedly that it would not roll out additional stimulus. The bank gave further hints towards its plan to do so in August. When we add this to the hopes that it would take only a short amount of time before the Japanese government rolls out its 10 trillion yen fiscal stimulus program, the yen got less attractive to investors thus falling down. The Japanese currency dropped down today; moving closer to 106 yen for one dollar. Against the pound, the Japanese yen also recorded losses dropping down to 140 yen per pound. This is because investors are still expecting measures from Britain to cool the shocking effect of the June 23 referendum vote to pull out the euro bloc.
