The yen weakened against major currencies following the Bank of Japan’s (BOJ) decision to hold steady on its monetary policy. The central bank’s commitment to its ultra-loose policy contrasts sharply with the tightening measures being implemented by other central banks globally.
The BOJ’s decision reinforces the view that it will remain an outlier in the global tightening cycle. This divergence in monetary policy is a key factor contributing to the yen’s weakness, as investors seek higher returns in other currencies.
Analysts expect the yen to remain under pressure as long as the BOJ maintains its dovish stance and interest rate differentials persist. The currency’s trajectory will likely depend on future BOJ policy decisions and global economic developments.
Key Factors Influencing the Yen:
- BOJ Monetary Policy
- Global Interest Rate Differentials
- Global Economic Outlook
