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Yen Near 154 as BOJ Holds at 0.5% and Minister Warns on Rapid Moves

Stubborn Tokyo inflation complicates the BOJ's path.

Overview

  • The Bank of Japan kept its policy rate unchanged at 0.5% in a 7–2 vote and said future hikes depend on the outlook, with Governor Kazuo Ueda offering few timing clues.
  • The yen traded around 153.9 per dollar and is heading for its worst month since July, with the dollar up about 4.1% against it this month.
  • Finance Minister Satsuki Katayama said she cannot endorse her earlier view that the yen's real value is 120–130 per dollar and warned against one‑sided, rapid moves, pledging close monitoring.
  • Tokyo core consumer prices rose 2.8% year on year in October, remaining above the 2% target and reinforcing the policy trade‑offs facing officials.
  • Dollar strength persisted as markets pared bets on a December Fed cut and as President Donald Trump touted a tentative tariff understanding with President Xi Jinping, with details still unclear.