BOJ Decision May Boost Yen After Tokyo's Intervention

The Japanese yen faced renewed pressure on Friday after Tokyo's coordinated intervention to prop up the currency. The dollar rose as much as 0.8 percent to 160.690 in early trades, reversing its previous day's 2.4 percent drop.

A market source told Reuters that Japan conducted yen-buying, dollar-selling intervention in the New York session overnight, pulling the sagging currency from four-decade lows.

The BOJ is widely expected to keep short-term interest rates steady at 1 percent today, having hiked in June. However, most analysts polled by Reuters expect a further rate hike to 1.25 percent by year-end.