Japan Steps in to Support Yen Ahead of BOJ Policy Decision

Japan has intervened in the foreign exchange market to prop up its yen currency ahead of the Bank of Japan's (BOJ) policy decision on Friday. According to a market source, Tokyo conducted yen-buying and dollar-selling intervention in New York markets on Thursday.

The move came as the US Treasury Secretary Scott Bessent suggested that Japan may have intervened to prop up its yen currency, stating it 'seems very undervalued to me.'

The BOJ is expected to keep interest rates steady at 1 per cent but signal its readiness to continue pushing up borrowing costs.

The Japanese finance ministry's foreign exchange division declined to comment on the intervention, while the New York Federal Reserve also refused to comment.