Investing.com– The Japanese yen weakened beyond the key 155 mark against the US dollar on Thursday after the country's central bank kept interest rates unchanged.
The Bank of Japan kept the rate unchanged at 0.25%, as policymakers remained cautious about Japan's economic outlook and the path of inflation.
The yen weakened against the US dollar with the pair, which measures the amount of yen needed to buy one dollar, rising 0.3% to 155.36 yen, the highest level since November 21. the pair rose 0.9% on Wednesday after hawkish signals from the Federal Reserve.
Currency strategists closely monitor the 155 level in the dollar-yen pair, seeing it as a possible pressure point for verbal intervention by the Japanese authorities. Another slide in the yen could increase calls for the BOJ to consider raising interest rates.
Markets were divided ahead of Thursday's decision, as some analysts expected a 25-point hike due to recent signs of rising inflation in Japan. Expectations of a rate hike have diminished in recent weeks.
The focus was now on him at 0630 GMT to explain the policy decision.
Analysts see the central bank likely to raise rates in the coming months, with an increase coming as soon as January or March.
Earlier in the day, the US Federal Reserve cut interest rates by 25 basis points but signaled a slower pace of rate cuts for next year.
The rise rose 0.1% in Asian trade on Thursday, and was at a two-year high.
