JPY weakens against dollar amid Bank of Japan meeting

(MENAFN) On Thursday, the Japanese yen depreciated to 155 against the US dollar, triggering concerns among traders amidst the Bank of Japan's two-day meeting to determine interest rates. The yen's decline has prompted speculation among market participants regarding potential intervention from Tokyo to bolster the currency's value while deliberations on monetary policy are ongoing.

After exhibiting relatively stable trading patterns in recent days, the dollar surpassed the 155 yen threshold for the first time since 1990 during the latest session. Notably, the US currency reached its highest level against the yen in 34 years, peaking at 155.74 yen on Thursday.

Market sentiment is increasingly focused on the possibility of intervention by the Japanese government to support the yen, which has hindered the dollar's ascent towards the aforementioned level. Some market observers interpret this threshold as an indication of Tokyo's readiness to intervene in currency markets.

As the Bank of Japan convenes to discuss monetary policy, expectations are rife that the central bank will maintain its short-term interest rate target at the conclusion of the meeting on Friday. This follows the cessation of the negative interest rate policy last month. Amidst these deliberations, market participants remain attentive to any indications regarding the central bank's stance on monetary policy and its potential implications for currency markets.



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