Japanese yen weakens to 156 against dollar after Bank of Japan leaves rates unchanged

The Japanese yen slid to over 156 against the U.S. dollar on Friday after the Bank of Japan left its benchmark interest rate unchanged.

The BOJ kept its benchmark policy rate at 0%-0.1% as expected. Japan’s central bank also said it will continue to conduct bond purchases in line with the March decision.

The yen touched fresh lows following the decision, hitting 156.79 against the U.S. dollar in afternoon trading.

Tokyo’s headline inflation rate for April came in at 1.8%, slowing from the 2.6% in March. Core inflation in the capital — which strips out prices of fresh food — sharply fell to 1.6% from March’s 2.4%, missing expectations of 2.2% from economists polled by Reuters.

Tokyo inflation data is widely considered as a leading indicator of nationwide trends.

Source: REUTER