Japan Steps In to Save Yen From Four-Decade Lows Ahead of BOJ Decision

The Japanese yen experienced a brief reprieve from its four-decade lows after Tokyo intervened in the currency market to buy yen and sell dollars during the New York overnight session.

This move helped lift the yen, pushing it back from recent lows of around 160.18 per dollar after a significant drop of 2.4% in the previous session, its worst since January 2023.

The intervention by Japan's government is seen as a way to stabilize the currency ahead of the Bank of Japan's (BOJ) policy decision, which is expected to keep short-term rates at 1%, following an increase in June and a potential hawkish stance amid rising price pressures.

Analysts predict that the BOJ may raise interest rates once more to 1.25% by the end of the year.