Yen gains after BOJ holds rates, dollar slips
TLT•The yen strengthened after the Bank of Japan held its main rate at 1.25% and upgraded its inflation outlook, while declining U.S. Treasury yields weighed on the dollar. The dollar index slipped 0.02% to 101.86 but was up 0.39% for October.
1. BOJ holds rates
The yen was on track for a third consecutive daily gain after the Bank of Japan left its main rate unchanged at 1.25% and upgraded its inflation outlook. The BOJ said policy had entered a more hawkish phase, with room to raise rates once every few months. The yen reached 157.89 per dollar and was set for a 0.11% gain in October.
2. Dollar under pressure
Declining U.S. Treasury yields weighed on the dollar. The dollar index edged down 0.02% to 101.86, though it was up 0.39% for October, its second consecutive monthly gain. The euro fell 0.17% to $1.1163 and was headed for a second straight monthly loss.
3. Markets weigh AI concerns
Results from Alphabet, Amazon and Intel rekindled worries about AI spending and triggered a selloff in technology stocks. The dollar often benefits when investors seek safe-haven assets, but the drag from lower Treasury yields was stronger on Friday.
