2026.04.2902:34:33UTC+00Yen Remains on Intervention Watch

The Japanese yen hovered around 159.6 per dollar in thin holiday trading on Wednesday, staying close to the critical 160 level even after the Bank of Japan adopted a hawkish hold earlier in the week. On Tuesday, the BOJ left its policy rate unchanged at 0.75% as widely expected, while raising its inflation outlook and cutting its growth forecast for FY2026 to account for the economic fallout from the conflict in the Middle East. In a notable shift, three of the nine policy board members voted in favor of a rate hike, highlighting mounting concern over inflationary pressures linked to the war involving Iran. BOJ Governor Kazuo Ueda reaffirmed the central bank’s commitment to a gradual tightening path, indicating that interest rates could continue to rise as economic, price, and financial conditions develop. Meanwhile, Finance Minister Satsuki Katayama reiterated that authorities remain prepared to intervene in the foreign exchange market at any time to support the yen.