Yen flat for the week amid cautious BOJ tone and rising inflation

The Japanese yen hovered close to 147.2 per dollar on Friday as BoJs July meeting minutes highlighted policymakers concerns over lingering US tariff risks. While the Bank of Japan unanimously held its short-term rate steady at 0.5%, the highest since 2008, members appeared divided on the future path of rate hikes. Several warned of persistent inflation and emphasized the need for gradual tightening to avoid sharper moves later. The BoJ also raised its FY 2025 core inflation forecast to 2.7% and slightly upgraded GDP projections, citing eased trade uncertainty after a deal with the US. A weaker US dollar, pressured by Fed rate cut expectations and a slide in the dollar index below 98, also helped keep the yen supported.

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