The Bank of Japan decided to keep the Japanese interest rates steady near zero to fight deflation risks that continued to weigh on economic activity in the world’s second largest economy. A deflated Yen is always a threat on the Japanese external economic relations which is based on exporting.

The yen fell against the dollar and the euro as Bank of Japan policy makers are expected to increase purchases of government debt to safeguard the recovery and limit the currency’s strength.

After going through this intensive week, it’s important to highlight the major events that have marked it. As spotting those important marks will guide us through the coming weeks till the end of the month.
First traders have a lot to be enthusiastic about after seeing the DJIA closing above 10,000 for two consecutive sessions this week.

The U.S. dollar has slumped to fresh lows in Asia-Pacific trade amid the backdrop of continued stock-market gains and associated risk appetite.
A spate of recent comments from global finance officials concerned about the weakening dollar has failed to lift the dollar as investors bet major central banks won’t back up their remarks by buying dollars.

After declining to a 4-month low yesterday hitting 1.5705, the Sterling has rallied during the last 24 hours to reach 1.5990 which is the Asian session high, right below psychological 1.6000 level. The sterling hit 1.6120 high on last Oct 8. The pair rallied ahead of the release of unemployment rate in England that is forecasted to reach 8.0%.

The Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and Swiss National Bank today announced they will extend their liquidity-providing facilities and operations through January 2010. The common currency was partially dragged lower by comments from Bank of England Governor King who said the weaker sterling has been “helpful” in reducing economic and financial imbalances.