The BOJ decided to keep interest rates unchanged and emphasized its hawkish stance. The yen extended its gains for a third straight day in late New York trading, while falling US Treasury yields weighed on the dollar.
In the New York foreign exchange market, the yen extended its gains for a third straight day, rising to ¥157.51 per dollar. While the BOJ kept its policy rate unchanged, there was a view that monetary policy had moved into a more hawkish phase, with the possibility of a rate hike in the coming months also suggested.
Some market participants viewed the BOJ's decision as disappointing, but others pointed out that a bias toward the Federal Reserve continues to cap the yen's upside. The dollar index remained broadly flat against other currencies.
Bitcoin fell more than 2.6% following reports of hackers' asset outflows, declining to around $76,780.93. US Treasury yields influenced foreign exchange movements, at times contributing to a stronger yen and weaker dollar.
Next week, attention will focus on the monetary policy meetings of the Bank of England and the Reserve Bank of Australia. With these developments in view, the market is expected to monitor the yen's movements and the BOJ's future stance.