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USD/JPY edges higher after Bank of Japan keeps rates at 1%

The BoJ decision matched market expectations in an 8-1 vote, with one member dissenting, while Japan’s finance minister reiterated authorities could intervene and coordinate with the United States.

Reported · Written up by our desk · Major Pairs

USD/JPY rose after two sessions of losses, trading around 160.80 during Asian hours on Friday as the Japanese yen weakened following the Bank of Japan’s decision to hold its short term interest rate at 1.00%.

FXStreet said the two-day monetary policy review ended with an 8-1 vote, matching market expectations, and noted board member Hajime Takata was the only dissenter, arguing for another rate hike amid concerns about upside inflation risks linked to Middle East conflict related demand pressures.

The outlet also highlighted that Japan’s finance minister, Satsuki Katayama, said authorities remain ready to step into the foreign exchange market at any time and that Japan is coordinating with the United States on currency moves.

Strategists at Scotiabank cited by FXStreet pointed to a shift in official rhetoric away from explicit FX defense, and the article added that improving global risk sentiment, including progress on US Iran talks and a Trump announced deal related to disarmament and Gaza, could cool safe haven demand for the US dollar.

Latest closeUSD/JPY 157.40 ▼1.7%

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