Japanese yen rises past 153 as BOJ keeps rates steady at 0.25%

The Japanese yen rose above 153 per dollar on Thursday, attempting to recover from three-month lows after the Bank of Japan opted to maintain its policy rate at 0.25%, a widely expected decision.

Japanese yen rises past 153 as BOJ keeps rates steady at 0.25%

The central bank also reaffirmed its forecast that inflation will remain close to the 2% target in the coming years, signaling its commitment to plans for policy normalization. Traders are now seeking insights from BOJ Governor Kazuo Ueda’s post-meeting briefing for clues on the timing and pace of future rate hikes. Over the past month, the yen is poised for a nearly 7% decline against the dollar, marking its most significant monthly drop since November 2016.

Yen declines amid strong dollar, rising yields, and political uncertainty

This decline has been driven primarily by solid gains in the dollar and rising Treasury yields. Additionally, a political shake-up in Japan has increased uncertainty surrounding the country’s fiscal and monetary policy outlook, further exacerbating the yen's fall.