The yen weakened amid fluctuating trading on Friday after the Bank of Japan (BOJ) decided to maintain its accommodative monetary policy at the end of its two-day meeting, while Asian stock markets experienced gains.
On Friday, the BOJ held interest rates close to zero as anticipated, and notably removed its usual reference to the specific amount of government bonds it plans to purchase monthly.
Additionally, the central bank updated its inflation forecasts, expecting it to hover near its 2% target over the next three years, indicating a potential increase in borrowing costs within the year.
However, the Japanese yen dropped to a low of 156 per dollar following the BOJ’s announcement, stabilizing at 156.15 per dollar.
Tokyo’s stock market ended the day higher, supported by the BOJ’s decision to keep its monetary policy steady.
The Nikkei 225 index rose by 0.8%, gaining 306.28 points to close at 37,934.76, while the broader Topix index increased by 0.9%, adding 22.95 points to finish at 2,686.48.
Meanwhile, Wall Street experienced declines on Thursday, influenced by weak U.S. economic data and disappointing corporate earnings.
The Dow Jones Industrial Average closed down 1.0% at 38,085.73, though it recovered approximately 330 points from its session low. The broad S&P 500 fell 0.5% to 5,048.43, and the tech-focused Nasdaq Composite Index dropped 0.6% to 15,611.76.
