The Japanese Yen fell sharply against most of its major currency crosses on Wednesday after the Bank of Japan deferred a decision on when to end support for corporate finance after the government pressed the central bank to consider the economic cost of its retreat from credit markets. By yesterday's close, the JPY fell against the EUR, pushing the oft-traded currency pair to 133.75. The Japanese Yen experience similar behavior against the GBP and closed at 143.65.
The central bank had been tipped to decide whether to stop corporate bond purchases and other measures used to cushion the shock of the financial crisis. BOJ Governor Masaaki Shirakawa suggested that an exit from the corporate finance market was a foregone conclusion and that the debate was primarily about timing. The decision on support for corporate finance could be taken at the next meeting at the end of October.