The yen fell against the dollar and other major currencies after the Bank of Japan (BOJ) announced it would hold steady its current monetary policy. The decision defied market expectations that the central bank would introduce additional stimulus measures to combat deflation and boost economic growth.

The BOJ’s announcement triggered a wave of selling in the yen, as investors unwound their long positions. The dollar rose sharply against the yen, reaching a high of 119.80.

Analysts had predicted that the BOJ would expand its asset-purchasing program or cut interest rates further into negative territory. However, the central bank opted to wait and assess the impact of its existing policies.

The BOJ’s decision reflects the challenges it faces in stimulating the Japanese economy. While the central bank’s aggressive monetary easing has helped to weaken the yen and boost exports, it has failed to generate sustained inflation.

The yen’s weakness could provide a boost to Japanese exporters, but it could also raise concerns about the rising cost of imports. The BOJ is expected to closely monitor the impact of its policies on the economy and adjust its stance as needed.