Japan’s currency intervention and Fed policy ambiguity push USD/JPY down 0.5% after a brief rebound near 160.30.
The US Dollar (USD) retreated against the Japanese Yen (JPY) on Friday, trading near 160.30 after a 0.5% decline. The pair had rebounded earlier but fell sharply on Thursday due to USD weakness and Japan’s intervention to support the Yen.
The Federal Reserve’s decision to hold rates at 3.50%-3.75% and avoid forward guidance added to market uncertainty. Japan’s Ministry of Finance intervened after the Yen hit multi-decade lows, with analysts noting international support for the move.
The Bank of Japan kept rates at 1%, maintaining a hawkish stance while warning of inflation risks. The intervention underscores Tokyo’s concerns over excessive Yen weakness.