The Bank of Japan kept interest rates steady, but Governor Kazuo Ueda’s comments sparked uncertainty about a potential rate hike in January. As a result, the yen slid more than 1% against the dollar, reaching its weakest level since July 2023. The currency fell to 156.77 against the greenback, and swaps market pricing for a rate hike declined. Despite the dip, reaction in stocks and bond markets was relatively subdued. Ueda’s comments raised concerns about momentum toward spring wage negotiations, which could impact policy decisions.
Source: https://www.bloomberg.com/news/articles/2024-12-19/yen-weakens-past-155-against-dollar-after-boj-stands-pat