The yen firmed after the Bank of Japan left its policy rate unchanged at 1.25% on Friday, 30 October, as widely expected. According to wire reports, the central bank raised its inflation forecast and stressed that it stands ready to keep lifting borrowing costs, a tone the market read as hawkish.
Reports put the dollar at about 157.1 to 157.5 per yen during the session. One Reuters-based account had the yen at a high of 157.115 per dollar and last around 157.2, leaving the pair broadly flat for October. Earlier in the day the pair had traded closer to 157.8 ahead of the decision, so the move on the announcement was modest.
What to watch
- How the yen trades into the new week now that the BOJ has pointed to further tightening without committing to a date.
- US yields, which fell to roughly one-month lows on Friday and have been a key driver of USD/JPY.
- Any official comment on yen weakness, since the pair remains near levels that have drawn attention before. See currency intervention explained.
Levels above are from intraday wire reports, not official closing prints. Markets are closed for the weekend and reopen Sunday evening. This is market commentary, not a trade recommendation.