The yen weakened on Thursday as the Bank of Japan (BOJ) maintained its ultra-loose monetary policy, further diverging from the tightening policies of other major central banks. The BOJ’s decision reinforces expectations that it will remain an outlier in the global trend of raising interest rates to combat inflation.

The central bank’s commitment to its easing policy puts downward pressure on the yen, as investors seek higher returns in other currencies. The persistent gap between Japanese and overseas interest rates is expected to continue weighing on the yen’s value.