FOREX TradingCharts.com

Forex News: Yen Slides As Bank Of Japan Retains Rate

Yen Slides As Bank Of Japan Retains Rate As Expected

05/01/2025 - 02:36:00 (RTTNews)

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Thursday, after the Bank of Japan left its interest rate unchanged for the second consecutive meeting and downgraded its growth projections citing trade tariff threats.

The policy board decided, by a unanimous vote, to hold the uncollateralized overnight call rate at around 0.50 percent. This was the highest level since the global financial crisis in 2008.

Previously, the bank had raised the benchmark rate to the current level from 0.25 percent in January.

In its quarterly Outlook for Economic Activity and Prices report, the bank downgraded its fiscal 2025 growth outlook to 0.5 percent from 1.1 percent and the projection for the fiscal 2026 to 0.7 percent from 1.0 percent.

The economy is forecast to expand 1.0 percent in the fiscal 2027.

Inflation outlook for fiscal 2025 and 2026 were also lowered mainly due to the fall in crude oil prices and the downward revision of the GDP growth rates.

Inflation was projected to ease to 2.2 percent in the fiscal 2025 compared to the previous forecast of 2.4 percent. The estimate for the fiscal 2026 was trimmed to 1.7 percent from 2.0 percent. For the fiscal 2027, inflation was seen at 1.9 percent.

Final Purchasing Managers' survey results released earlier in the day showed that the manufacturing sector contracted less than initially estimated in April. The au Jibun Bank factory PMI rose to 48.7 from 48.4 in the previous month. The flash reading was 48.5.

The focus now shifts to the press conference held after the meeting, where remarks made by BoJ Governor Kazuo Ueda will be attentively examined for clues about the future course of rate hikes, which might have a big impact on the movement of the JPY in the near future.

The JPY's decline was further fueled by earlier comments made by U.S. President Donald Trump that raised hopes of a possible reduction in trade tensions between the US and China. The demand for conventional safe-haven assets like the Yen was subsequently impacted by this.

In the Asian trading, the yen fell to a 4-day low of 143.85 against the U.S. dollar and a 9-day low of 173.99 against the Swiss franc, from yesterday's closing quotes of 143.02 and 173.17, respectively. If the yen extends its downtrend, it is likely to find support around 148.00 against the greenback and 175.00 against the franc.

Against the euro and the pound, the yen edged down to 162.70 and 191.28 from Wednesday's closing quotes of 161.95 and 190.52, respectively. The yen may test support near 165.00 against the euro and 195.00 against the pound.

Looking ahead, the Bank of England's U.K. mortgage approvals data March and U.K. S&P Global final factory PMI data for April are slated for release in the European session.

In the New York session, U.S. weekly jobless claims data, U.S. and Canada PMI data for April and U.S. construction spending data for March are slated for release.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Euro Retreats Against Majors (05 hr(s), 17 min(s), 42 sec(s) ago)
(RTTNews) - The euro retreated against its major counterparts in the New York session on Monday. ...Full Story»

Dollar Index Extends Gains On Trade Deal Optimism (13 hr(s), 35 min(s), 43 sec(s) ago)
(RTTNews) - Rising optimism surrounding trade deals between the U.S. and its trading partners, and ...Full Story»

U.S. Dollar Higher On Trade Hopes (05 hr(s), 41 min(s), 43 sec(s) ago)
(RTTNews) - The U.S. dollar appreciated against its major counterparts in the New York session on ...Full Story»

Antipodean Currencies Recovers Amid U.S.-China Trade Deal Optimism (15 hr(s), 26 min(s), 43 sec(s) ago)
(RTTNews) - The Antipodean currencies such as the Australia and the New Zealand recovered from rec ...Full Story»

Yen Rises Amid Risk-off Mood, BoJ Rate Hike Bets (16 hr(s), 32 min(s), 43 sec(s) ago)
(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on F ...Full Story»

NZ Dollar Rebounds Against Majors (17 hr(s), 50 min(s), 43 sec(s) ago)
(RTTNews) - The New Zealand dollar rebounded from recent lows against other major currencies in th ...Full Story»

Australian Dollar Recovers Against Majors (18 hr(s), 11 min(s), 43 sec(s) ago)
(RTTNews) - The Australian dollar recovered from recent lows against other major currencies in the ...Full Story»

Yen Rises Against Majors (18 hr(s), 23 min(s), 43 sec(s) ago)
(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on F ...Full Story»

Search

FOREX NEWS

Euro Retreats Against Majors

05/19/2025 - 15:54 PM (RTTNews)
(RTTNews) - The euro retreated against its major counterparts in the New York session on Monday. ...Full Story>>

Dollar Index Extends Gains On Trade Deal Optimism

05/19/2025 - 07:38 AM (RTTNews)
(RTTNews) - Rising optimism surrounding trade deals between the U.S. and its trading partners, and ...Full Story>>

U.S. Dollar Higher On Trade Hopes

05/16/2025 - 15:31 PM (RTTNews)
(RTTNews) - The U.S. dollar appreciated against its major counterparts in the New York session on ...Full Story>>

Antipodean Currencies Recovers Amid U.S.-China Trade Deal Optimism

05/16/2025 - 05:46 AM (RTTNews)
(RTTNews) - The Antipodean currencies such as the Australia and the New Zealand recovered from rec ...Full Story>>

Yen Rises Amid Risk-off Mood, BoJ Rate Hike Bets

05/16/2025 - 04:40 AM (RTTNews)
(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on F ...Full Story>>

Do not sell my personal information

Copyright © 2025. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.