After the Bank of Japan held rates as expected and for the first time signaled
inflation trends had reached 2%, USD/JPY fell about 0.24% to 157.34 following an
8-1 policy board vote. The move helped the yen regain some safe-haven status
after years in which wide yield differentials and large Japanese overseas
investment flows limited its protective role. A Goldman Sachs strategist said
the yen is becoming a more effective hedge against AI-driven market shocks as
changes in Japan’s policy backdrop reduce the risk of sharp yen depreciation
when global yields rise.
