After the Bank of Japan's monetary policy meeting, the yen was bought against the dollar and rose to the low ¥157 range. The Outlook Report pointed to significant upside risks for prices.
At its monetary policy meeting, the Bank of Japan judged for the first time since the 2013 target was set that underlying inflation had reached around 2%, and decided by a majority vote to keep the policy rate at around 1.25%. The Outlook Report said that upside risks to prices were greater.
The yen temporarily rose to ¥157.12 per dollar, up 0.4% from the New York close, after trading in the mid-¥157 range before the Bank of Japan announced its decision. The yen was bought from the morning amid falling share prices and had reached ¥156.08 per dollar at one point last week.
The market is digesting the meeting's outcome for now and is seeking to assess comments on the timing and pace of future rate hikes at Governor Ueda Kazuo's (植田 和男) press conference, scheduled for 3:30 p.m. Market participants believe that AI-related risks and changes in the interest-rate environment will affect the yen's movements.