FX.co ★ Japanese Yen Weakens as BOJ Holds Rates

The Japanese yen depreciated to approximately 143.4 per dollar on Thursday, marking its third consecutive decline. This occurred following the Bank of Japan's decision to maintain its policy rate at 0.5%, a move that aligned with market expectations. For the second consecutive meeting, the BOJ kept its policy unchanged, as the board continued to evaluate the potential repercussions of tariff measures imposed by US President Donald Trump on Japan’s export-centric economy. Investors and analysts are now shifting their attention to the forthcoming press conference by BOJ Governor Kazuo Ueda, seeking deeper insights into the central bank’s policy direction and future outlook. Furthermore, the yen's weakening was exacerbated by Trump’s indication of progress in bilateral trade discussions with Japan on Wednesday, which bolstered demand for the dollar. He also mentioned the prospects of trade agreements with India and South Korea and expressed confidence in reaching an accord with China.