Yen Weakens After Tokyo Intervention Ahead of BOJ Policy Decision

The Japanese yen weakened on Friday after experiencing a surge in the previous session due to Tokyo's intervention in the currency markets ahead of the Bank of Japan's policy decision.

The dollar gained by as much as 0.45% to 160.175 in early trades, up from its biggest single-day drop since January 2023 in the previous session when it fell 2.4%. The BOJ is expected to keep short-term interest rates steady at 1%, having hiked in June.

Japan conducted yen-buying, dollar-selling market intervention in the New York session overnight, a market source told Reuters. This move helped pull the sagging currency from four-decade lows.