The yen rose 1% against the dollar, and the Bank of Japan implemented an additional interest rate hike - just around 151 yen

July 31, 2024 16:52 JST
The exchange rate of yen rose 1% against the dollar in the foreign exchange market on the 31st. The Bank of Japan decided on an additional interest rate increase and a reduction plan for long-term government bond purchases until the end of fiscal year 2025 at the monetary policy meeting on this day.
　　The yen rose to 151 yen 01 yen against the dollar, 1.2% higher than the previous business day. The highest price since April 5.

At the press conference after the meeting, Governor Ueda stated that the current interest rate level is extremely low, and then expressed the view that “I don't think interest rate hikes will have a big negative impact on the economy.” In response to the question of whether they are aware of 0.5% as a barrier about future interest rate increases, he stated “I'm not particularly aware.” He said he didn't envision a pass of how many months in advance for the timing of the next rate hike.