The Bank of Japan stepped in with a currency intervention as the Japanese yen approached the key psychological level of 160 against the US dollar. According to CoinTelegraph, this major intervention aimed to stabilize the yen amid recent volatility.
FX Street (BBH) reported that the USD/JPY pair briefly dropped to 158.00 on signs of the intervention before rebounding near 161.00 and then falling again. Meanwhile, the Bank of Japan maintained its policy rate at 1% in an 8–1 vote, with Governor Ueda delivering hawkish remarks signaling a potential 25 basis points rate hike expected in December, FX Street (TD Securities) noted.
This move reflects the central bank’s delicate balancing act between supporting the yen and managing monetary policy, as Japan faces ongoing inflation pressures and global currency market turbulence that impact both FX and equity markets relevant to Japanese investors.