The Japanese yen strengthened further against the US dollar following the Bank of Japan's decision to maintain its interest rates unchanged. The central bank's vote, with 8 members in favor and 1 against, was widely anticipated by all 53 economists surveyed by Bloomberg Terminal.
The yen climbed as much as 0.4% to reach 157.12 per dollar. This move came as the BOJ signaled that underlying inflation in Japan has hit the 2% target for the first time, a key milestone in the country's economic recovery.
The decision to keep rates steady reflects the BOJ's cautious approach amid improving economic conditions. The market reaction underscores the yen's resilience, supported by the central bank's cautious optimism about inflation.