Foreign exchange – Yen surges to 20-month highs as BoJ holds earlier than Brexit vote

© Reuters.  Yen surges more than 2% to 20-month highs as BoJ holds ahead of Brexit vote© Reuters. Yen surges more than 2% to 20-month highs as BoJ holds ahead of Brexit vote – The yen jumped more than two percent to 20-month highs against the dollar on Thursday after the Bank of Japan kept monetary policy steady ahead of a U.K. referendum on European Union membership next week that could roil markets.

tumbled 2.13% to 103.75, the lowest level since August 2014 after the at the conclusion of its two-day meeting on Thursday.

BOJ officials voted to continue expanding the monetary base at an annual rate of about ¥80 billion.

The BoJ also flagged the EU referendum on June 23 as a key geopolitical threat to the Japanese economy, along with the “European debt problem”.

The decision came after the Federal Reserve also cited the referendum as a factor in its decision on Wednesday to keep interest rates on hold.

The dollar had already weakened against the other major currencies after the in the next few years.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% at 94.45.

The dollar was little changed against the euro, with at 1.1263.

The single currency was sharply lower against stronger yen, with down 1.99% at 116.99, the weakest level since January 2013.

The pound was also lower ahead of the Bank of England’s latest interest rate announcement later on Thursday.

No changes to monetary policy are expected but the meeting minutes could contain a fresh warning about the risks posed by next week’s referendum.

was down 0.36% at 1.4153, while was up 0.44% at 0.7960.

Sterling tumbled more than two percent against the yen, with dropping 2.35% to 147.09, the lowest level since April 2013.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.