The Yen is experiencing sustained pressure following the Bank of Japan’s (BOJ) decision to hold steady its monetary policy. This move has solidified market expectations that Japan will maintain its ultra-loose monetary settings. This outlook continues to weigh on the currency’s attractiveness compared to other currencies with higher interest rates.

The BOJ’s commitment to its current policy is aimed at supporting the country’s fragile economic recovery and ensuring that inflation remains sustainably above its 2% target. However, this approach contrasts sharply with the tightening cycles underway in other major economies, further widening the interest rate differential and contributing to Yen weakness.