Yen Extends Gains as BOJ Signals a More Hawkish Policy Phase
The yen rose after the BOJ held its main rate steady and lifted its inflation outlook, while lower US Treasury yields weighed on the dollar.
Key takeaways
- The yen rose 0.11% to 157.51 per US dollar on Friday.
- The BOJ kept its main rate at 1.25% and said policy had entered a more hawkish phase.
The yen gained for a third straight day on Friday, rising 0.11% to 157.51 per US dollar, after the Bank of Japan held its main rate at 1.25%.
The BOJ also upgraded its inflation outlook and said policy had entered a more hawkish phase, leaving room for rate increases every few months. The yen was still on track for a monthly loss in October.
Declining US Treasury yields weighed on the dollar, while a sell-off in technology stocks linked to concerns about artificial intelligence spending also pressured the currency. Joseph Trevisani, a senior analyst at FXStreet, said the market was “a little disappointed in the BOJ.”
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
