The yen fell broadly after the Bank of Japan (BOJ) announced it would maintain its current monetary policy. The central bank’s commitment to its ultra-loose policy stands in contrast to other major central banks, particularly the U.S. Federal Reserve, which are raising interest rates to combat inflation.

The BOJ’s decision reflects its continued concern about achieving sustained inflation. While inflation has risen somewhat in Japan, it remains below the BOJ’s 2% target. The central bank believes that maintaining its current policy is necessary to support economic growth and push inflation higher.

The widening gap between Japanese and U.S. interest rates is putting downward pressure on the yen. Investors are selling the yen to buy higher-yielding assets in other countries, particularly the United States.

Analysts expect the yen to remain weak as long as the BOJ maintains its easy policy and other central banks continue to tighten monetary policy.

Factors Influencing the Yen’s Value:

• Monetary Policy: The BOJ’s ultra-loose policy is a key factor weakening the yen.
• Interest Rate Differentials: The widening gap between Japanese and U.S. interest rates is putting downward pressure on the yen.
• Global Economic Outlook: Concerns about the global economic outlook could also weigh on the yen.