The yen weakened against the dollar following the Bank of Japan’s (BOJ) decision to hold steady its monetary policy. The central bank’s announcement reinforced its commitment to its current stimulus measures, a move that contrasted with some market expectations.

The BOJ’s decision to maintain its ultra-loose monetary policy comes as other central banks globally are tightening their monetary policies to combat inflation. The BOJ, however, remains focused on supporting economic growth and achieving its 2% inflation target in a sustainable manner.

Analysts suggest that the yen’s weakness could persist as long as the BOJ maintains its dovish stance, diverging from the tightening policies of other major central banks. The currency’s trajectory will likely depend on future BOJ policy decisions and global economic developments.