The Japanese yen fell in Asian trade on Wednesday on track for the fourth straight loss against the US dollar, and about to plumb two-week lows. It comes after the BOJ’s policy decisions today.
The Bank of Japan voted to hold interest rates unchanged at 0.5%, the highest since 2008 as expected.
All nine members of the BOJ voted unanimously in favor of maintaining rates unchanged, as policymakers require more time to assess the impact of US tariffs on Japan’s export-oriented economy.
The Price
The USD/JPY pair rose 0.3% today to 149.74 yen per dollar, with a session-low at 149.08.
The yen lost 0.1% on Tuesday, the third loss in a row, hitting a two-week trough at 149.93.
BOJ
As expected, the Bank of Japan maintained interest rates flat at 0.50%, with members warning of growing outside economic risks, especially US tariffs.
The BOJ stated that the Japanese economy is recovering moderately, but accompanied by some weak indicators.
The BOJ expects the economy to achieve progress towards the 2% inflation target, buoyed by higher wages and consumption.
It said that future interest rate decisions will rely on global economic developments and inflation trajectories.
Japanese Rates
The odds of a Bank of Japan interest rate hike at the May meeting fell to below 50%, with traders now waiting for more inflation, wages, and unemployment data in Japan.
