After the Swiss National Bank yesterday The Bank of Japan also decided to do something about rising exchange rate of their national currency.According to Bank of Japan strength of yen has been a major detriment on the Japan’s economy,next to rebuilding efforts from the this year earthquake and tsunami disasters.

Their intervention to the currency market resulted in rising of EUR/JPN exchange rate from 110.70 to more than 113.10. But,in their intervention BoJ bought US dollars,which resulted in falling EUR/USD exchange rate. More movements in major currencies exchange rates are expected after European Central Bank and Bank of England rate decisions later today.

According to the Bloomberg surveys decision about rate of 1.5% is expected from ECB, with clear statement that there will be no rate hikes in September ECB meeting.

Most of Euro-zone growth indicators are declining in last weeks, showing that economic growth will probably slow down in the second part of the year. With debt concerns about Italy and Spain steady rate decision is even more likely.If ECB also shows a willingness to resume bond buying as a way to support Italian and Spanish financial markets, that may destroy currency market fears (temporarily at least) and we could see Euro exchange rates strengthen against other major currencies.

At the time of writing this report Euro exchange rates against other currencies are:
1 EUR can be bought for 1.4156 US dollars,
1 EUR can be bought for 111.55 Japanese Yens,
1 EUR can be bought for 1.0844 Swiss Francs

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