Tokyo Intervenes in Foreign Exchange Markets Ahead of BOJ Decision

Japan intervened in foreign exchange markets on Thursday to prop up its currency, the yen, ahead of the Bank of Japan's policy decision on Friday. According to a market source, Tokyo conducted yen-buying and dollar-selling intervention in New York, marking its first such move in three months.

The move comes as the yen has slumped to four-decade lows, exacerbating living costs hit by the Iran war-driven energy shock. Finance Minister Satsuki Katayama had repeatedly threatened 'decisive' action, but so far, it has failed to give a sustained boost to the sagging currency.

The Bank of Japan is widely expected to keep interest rates steady at 1% on Friday, but signal its readiness to continue pushing up borrowing costs. BOJ Governor Kazuo Ueda will hold a post-meeting news briefing, which markets are watching closely for signs on future rate-hike path.