The dollar is rising against the euro, stable against the pound sterling during trading on Wednesday, the Japanese yen is significantly cheaper amid the results of the Bank of Japan meeting.

The Bank of Japan left the main parameters of the monetary policy (MPC) unchanged following the results of the two-day meeting that ended on Wednesday. The short-term interest rate on deposits of commercial banks in the Central Bank was kept at minus 0.1% per annum, the target yield of ten-year government bonds – about zero, according to the statement of the Japanese central bank, distributed after the meeting. The decision was made unanimously. It also matched most analysts’ forecasts.

The bank also kept the range within which the yield of ten-year government bonds (JGB) can fluctuate at plus/minus 0.5%. At the same time, some economists expected the BOJ to relinquish control of the government bond yield curve, Trading Economics reported.

The regulator worsened its GDP growth forecast for fiscal 2022, which ends in March, to 1.9% from the previously expected 2%, citing slowing economic growth abroad and high commodity prices. In FY 2023, an increase of 1.7% is assumed against the previous estimate of 1.9%. Inflation is also expected to be around 3% this fiscal year and slow to 1.6% next year.

Federal Reserve Bank of Richmond (FRB) Governor Tom Barkin said the US Federal Reserve (Fed) should avoid the mistake of prematurely declaring victory over inflation. “If you give up while inflation is still at a high level, it’s going to go even higher next time, which means you’re going to have to do more damage to curb it,” Barkin said during an interview on Fox Business Network.

As of 9:03 a.m. Moscow time, the euro was down 0.05% against the dollar to $1.0783 versus $1.0788 at the close of the previous session.

The dollar-yen exchange rate rose 2.01% to 130.68 yen from 128.11 yen at the end of the previous session.

The pound sterling traded at $1.2287 against $1.2286 at the end of previous trading.

The index calculated by ICE, which shows the performance of the U.S. dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), is up 0.4%.