Yen gains after BOJ; AI selloff weighs on dollar
TLT•The yen rose after the Bank of Japan held its main rate at 1.25% and signaled it could raise rates every few months. The dollar index fell 0.2% as lower Treasury yields outweighed safe-haven demand during an AI-related tech selloff.
1. BOJ signals possible hikes
The yen strengthened to 157 per dollar and was on track for a third consecutive daily gain after the Bank of Japan held its main rate at 1.25% and revised up its inflation forecast. The BOJ said policy had entered a more hawkish phase, with room for rate increases every few months.
2. Dollar slips on yields
The dollar index fell 0.2%, with declining Treasury yields weighing more heavily than the usual safe-haven demand as selling in AI shares renewed concerns about spending. The euro rose 0.12% to $1.1195 after the European Central Bank held rates and comments from President Christine Lagarde lifted the currency.
