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Surprise BOJ Decision Will Help Ease Japan’s Energy Crisis

  • Yen’s rally slated to help reduce Japan’s fuel import costs
  • Weakening currency was complicating effort to stockpile fuel
Updated on

The Bank of Japan’s latest policy shock will provide some relief to the nation’s energy crisis, helping to cut the cost to procure fuel from overseas.

BOJ Governor Haruhiko Kuroda’s surprise decision to widen the trading band on 10-year bond yields triggered the biggest one-day jump in the yen in over two decades. The stronger yen is bound to benefit the nation’s power producers, gas distributors and refiners, which have grappled with surging fuel costs due to the rapidly devaluing currency and global energy crunch.