Yen Weakens After Tokyo Intervention Ahead of BOJ Rate Decision

The Japanese yen weakened after Tokyo intervened in the currency markets to support its value. The intervention was conducted in the New York session overnight, where Japan bought yen and sold dollars, pulling the currency from four-decade lows.

The move came ahead of the Bank of Japan's (BOJ) policy decision, which is widely expected to keep short-term interest rates steady at 1%. However, a hawkish tone is anticipated due to rising price pressures.

Analysts polled by Reuters expect the BOJ to raise rates again to 1.25% by year-end, as the slow pace of rate hikes has been blamed for pushing the yen to a 40-year low.