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Bank of Japan holds rates steady as yen nears 160 amid intervention
The BoJ kept its policy rate at 1.0% after officials reportedly intervened as the yen swung up to 3.5% versus the US dollar on Thursday.
The Bank of Japan held interest rates steady at 1.0% on Friday, according to its latest statement, after the yen moved sharply around a key psychological level following a reported major currency intervention.
The BoJ said it would encourage the uncollateralized overnight call rate to remain around 1.0%, with eight of nine Policy Board members voting for the decision. Only Hajime Takata proposed a 0.25% rate hike, and the benchmark rate stays at its highest level since 1995.
Cointelegraph reports the yen saw snap volatility after the move, rising as much as 3.5% against the US dollar on Thursday, a change widely attributed to central bank intervention. The BoJ did not comment on the latest yen moves.
Cointelegraph also notes the intervention timing overlapped with a rebound in South Korea’s stock market after heavy selling in semiconductor stocks, with the Korean won up by around 1% amid reports of a joint intervention by the BoJ and Korea’s central bank. An analyst cited tight currency ties between the won and yen as a reason joint action could amplify the impact, according to Straits Times.