The yen fell to a new 34-year low against the dollar after the Bank of Japan signaled that monetary policy will remain accommodative. Increasing speculation authorities could soon intervene in the market to stop the currency’s decline.
The Japanese currency weakened as much as 1.4% that day, hitting a low of ¥157.79 per dollar in afternoon trading in New York. The decline followed a BOJ policy meeting in which the central bank kept its key interest rate unchanged and Governor Kazuo Ueda said little at a news conference to support the currency.
Losses widened even after a gauge of underlying U.S. inflation came in line with expectations, dampening concerns about persistent price pressures that could delay Federal Reserve rate cuts.
