The Japanese yen experienced a notable surge in value against the U.S. dollar after reaching its weakest level in three decades, prompting speculation about potential intervention following the Bank of Japan's decision to maintain interest rates. The market was highly attentive as the yen suddenly rose to 154.97 after previously hitting a low of 156.82 against the dollar, marking its lowest level since 1990.
Following a two-day meeting, the Bank of Japan opted to keep its short-term interest rate target at 0-0.1% and made slight adjustments to its inflation forecast. While investors were not anticipating a policy shift, they interpreted the decision as a signal that only minor adjustments could be expected in the near future. BOJ Governor Kazuo Ueda mentioned that the ongoing weakness of the yen has not significantly impacted the inflation trend, further contributing to the market's observation of the currency's movement.