Forex News: Yen Rises After BoJ Policy Decision

Yen Rises After BoJ Policy Decision

(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on Tuesday, after the Bank of Japan left its key interest rate unchanged and upgraded its inflation outlook citing higher global crude oil prices.

The policy board voted 6-3 majority to hold the uncollateralized overnight call rate at around 0.75 percent.

The bank had raised its interest rate by 25 basis points to the current level in December 2025.

Asian stock markets traded lower, as traders remain cautious amid the uncertainty about the opening of the Strait of Hormuz even as crude oil prices keep soaring. Traders also await a series of central bank decisions, including from Japan and the U.S. later in the week.

U.S. President Donald Trump and his national security team on Monday discussed Iran's proposal to reopen the Strait of Hormuz, but it remains unclear whether Trump would accept the proposal.

Satsuki Katayama, Japan's finance minister, stated that the volatility of crude oil is impacting the overall economy and feeding into foreign exchange markets. Additionally, Katayama raised concerns about intervention and supported the JPY by warning that authorities were prepared to take firm action against speculative activity.

In the Asian trading now, the yen rose to a 4-day high of 214.95 against the pound and a 1-week high of 158.96 against the U.S. dollar, from yesterday's closing quotes of 215.74 and 159.37, respectively. If the yen extends its uptrend, it is likely to find resistance around 213.00 against the pound and 157.00 against the greenback.

Against the euro and the Swiss franc, the yen advanced to more than 2-week highs of 186.07 and 201.81 from Monday's closing quotes of 186.80 and 202.98, respectively. The yen may test resistance around 183.00 against the euro and 198.00 against the franc.

Looking ahead, U.S. ADP weekly employment data, U.S. Redbook report and U.S. S&P/Case-Shiller home price index for February, U.S. Consumer Board's consumer confidence for April, U.S. Richmond Fed manufacturing index for April and U.S. Dallas Fed services index for April is slated for release in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Market News provided by RTTNews