Yen Falls As BoJ Keeps Policy Settings Unchanged

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Friday, as the Bank of Japan continued to maintain its ultra-loose monetary policy at the end of the June monetary policy meeting held today.

In a unanimous vote, the policy board decided to keep the short-term policy rate and the yield curve control unchanged.

Policymakers forecast consumer price inflation to decelerate towards of the middle of the fiscal 2023. Nonetheless, inflation is projected to accelerate again moderately with the improving output gap.

Investors reacted positively to the improved outlook for interest rates after the U.S. Fed paused its interest rate hikes following ten consecutive rate hikes.

The safe-haven yen started falling against its major rivals from 12th June onwards.

In the Asian trading today, the yen fell to 153.95 against the euro and 157.74 against the Swiss franc, for the first time since September 2008 and December 1979, respectively. At Thursday's close, the yen was worth 153.51 against the euro and 157.19 against the franc. The yen may see support around around 160.00 against the euro and 162.00 against the franc.

The yen slid to 179.75 against the pound, its lowest level since December 2015. At yesterday's close, the pair was worth 179.24. If the yen weakens further, it is likely to test support around the 181.00 region.

Rebounding from a recent 2-day high of 139.85 against the U.S. dollar, the yen edged down to 140.78. The pair had fell to 141.50 on Thursday, its lowest level since 23rd November 2022. If the yen extends its downtrend, it is likely to find support around the 143.00 area.

Against the Australia, the New Zealand and the Canadian dollars, the yen slipped to a 9-month low of 96.74, a 6-month low of 87.71 and a 7-month low of 106.36 from yesterday's closing quotes of 96.52, 87.45 and 106.05, respectively. The yen is seen facing support around 99.00 against the aussie, 89.00 against the kiwi and 109.00 against the loonie.

Looking ahead, Euro group finance ministers is scheduled to meet in Brussels at 4:00 am ET.

At 5:00 am ET, Eurozone final Inflation rate for May is due to be released.

In the New York session, Canada final wholesale sales data for April, U.S. University of Michigan preliminary consumer sentiment for June and U.S. Baker Hughes oil rig count data are slated for release.