Japanese Yen Hits 145 against Greenback after BOJ Holds Interest Rate at -0.1%

The Japanese yen weakened after a decision by the Bank of Japan was in line with expectations to keep interest rates unchanged.

In a unanimous vote on Thursday, Japan’s central bank agreed to hold the interest rate at -0.1% target for short-term interest rates, and 0% for the 10-year government bond yield.

BOJ also decided to shrink a Covid-19 relief loan scheme and instead expand a liquidity operation in which the central bank targets a broader range of corporate funding-needs.

Pressured by the Fed’s rate hike by 75 basis points and a strong U.S. dollar index to 111.697, Japanese yen weakened to 145 against the US dollar.