The Japanese Yen experienced a decline in value as the Bank of Japan (BOJ) announced it would maintain its current ultra-loose monetary policy. This decision stands in contrast to the tightening measures being implemented by other major central banks around the globe, contributing to the Yen’s weakness.

The BOJ’s Governor, Haruhiko Kuroda, stated that the central bank would continue its quantitative easing program until inflation stably exceeds its 2% target. He emphasized the need to support the fragile economic recovery in Japan, citing global economic uncertainties as a significant risk.

Analysts predict that the Yen may face further downward pressure as long as the BOJ maintains its dovish stance while other central banks raise interest rates. This divergence in monetary policy is expected to widen the interest rate differential, making the Yen less attractive to investors.

Here are some factors contributing to the Yen’s weakness:

• BOJ’s commitment to ultra-loose monetary policy
• Rising interest rates in other major economies
• Global economic uncertainty

The impact of a weaker Yen on the Japanese economy is mixed. While it can boost exports and corporate profits, it also increases the cost of imports, potentially leading to higher inflation.