The yen weakened against the dollar on Thursday after the Bank of Japan (BoJ) left interest rates unchanged at around 0.25%, marking a continued retreat for the currency amid a dovish stance and fewer expected US rate cuts.
The BoJ‘s decision followed a two-day policy meeting, with policymakers opting to await clarity on next year’s wage increases before considering further rate hikes. The yen fell to over 155 per dollar, down from 153.66 on Wednesday.
The Japanese government recently approved an additional budget of nearly 14 trillion yen (£77 billion) to fund economic stimulus, including subsidies and aid for small businesses. Economists suggest the BoJ may hold off on rate increases until January or later, aligning with domestic fiscal measures and global uncertainties.
