The yen experienced a decline following the Bank of Japan’s (BOJ) decision to uphold its accommodative monetary policy. This move diverges from the strategies adopted by numerous other central banks globally, which are currently implementing interest rate hikes to address inflationary pressures.

The BOJ’s commitment to its current policy reinforces market expectations that Japan will sustain its low interest rate environment for the foreseeable future. This expectation puts downward pressure on the yen as investors seek higher returns in other currencies.