Yen weakens to 153 after Fed cut and BoJ decision

The Japanese yen slid to around 153 per dollar on Thursday, hitting its weakest level in nine months after the Bank of Japan left its policy rate unchanged at 0.5%. The central banks board voted 7-2 to maintain the uncollateralized overnight call rate and kept its inflation outlook steady. For fiscal 2025, inflation is expected to average 2.7% before easing to 1.8% the following year, with the 2% target likely reached by fiscal 2027. The BoJ also projected moderate economic growth as global conditions improve. Meanwhile, a stronger US dollar added further pressure on the yen after the Federal Reserve announced a quarter-point rate cut on Wednesday, as traders weighed diverging policy paths between Tokyo and Washington.

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