Yen Weakens Against Dollar After BOJ Holds Benchmark Rate

The yen weakened after the Bank of Japan left its benchmark interest rate unchanged, falling as much as 0.2% to 158.74 to a dollar.

The widely expected decision comes a month after the BOJ raised its policy rate to the highest level in three decades. Markets are now on alert for any hawkish signals from the central bank, after Prime Minister Sanae Takaichi’s pledge to cut consumption taxes triggered turmoil in the government bond market and weighed on the yen.