Yen Under Pressure Amid BOJ's Steady Rates and Geopolitical Tensions

The yen remains rangebound following the Bank of Japan's decision to keep rates steady. Meanwhile, the U.S. dollar faces its largest weekly drop in a year due to geopolitical tensions involving Greenland. Investors are particularly attentive to comments from BOJ Governor Kazuo Ueda for guidance on potential future hikes.

The yen has stayed rangebound after the Bank of Japan held its rate steady, aligning with market expectations. At the same time, the U.S. dollar is experiencing its steepest weekly drop in a year. This comes amid geopolitical uncertainties, with investors eyeing abrupt policy changes surrounding Greenland.

The Bank of Japan recently increased its policy interest rate to a 30-year high. However, market watchers remain concerned about the yen's frailty. Any further weakening beyond the 160-yen mark could lead Tokyo to intervene in currency markets. BOJ Governor Kazuo Ueda is expected to give further insights during his upcoming news conference.

Simultaneously, the dollar is facing significant selling momentum. President Trump's unexpected remarks regarding Greenland have unsettled investors, contributing to a broader decline in U.S. assets. The dollar index has consequently experienced its worst weekly performance since January 2025.

(With inputs from agencies.)