London Daily

Focus on the big picture.
Thursday, Jan 29, 2026

Yen slumps to 9-year low vs euro after BOJ maintains ultra-low rates

Yen slumps to 9-year low vs euro after BOJ maintains ultra-low rates

The Japanese yen fell to a nine-year low against the euro on Friday after the Bank of Japan left its ultra-easy monetary policy unchanged even as it scrapped a pledge to keep interest rates low, according to Reuters.
The euro briefly rose to its highest level against the yen since December 2014 at 149.50. It was last up 1 percent at 148.98 yen with expectations the European Central Bank will hike rates again next week also supporting the single currency.

The outcome of new BOJ Gov. Kazuo Ueda’s first policy meeting was closely watched. As expected, the BOJ said it would maintain ultra-low interest rates, and unanimously decided to make no changes to its yield curve control policy.

However, the central bank removed a pledge to keep interest rates at “current or lower levels” and said it would “conduct a broad-perspective review of monetary policy.”

That review is expected to last around one to one-and-a-half years and would lay the groundwork for Ueda to gradually phase out his predecessor’s massive stimulus program.

The yen fell sharply also against the US dollar, down 1.3 percent to 135.78, its lowest since March 10.

“The hopes of a policy change has been somewhat dampened by the review,” said Moh Siong Sim, a currency strategist at Bank of Singapore, adding that the likely length of the review might have cooled hopes of an imminent move in the policy setting.

“For now, the outcome is read as a dovish outcome.”

On Friday, however, government data showed core consumer prices in Japan’s capital, Tokyo, rose 3.5 percent in April from a year earlier, beating market forecasts in a sign of broadening inflationary pressure in the world’s third-largest economy.

“This puts pressure on the BOJ, they might do something in the near future,” said Tina Teng, market analyst at CMC Markets.

Elsewhere, the euro fell 0.4 percent to $1.10986, but remained near its recent one-year high, after German first quarter growth came in weaker than expected. Bloc-wide gross domestic product figures are due at 0900 GMT.

The common currency was eyeing a monthly gain of more than 1.3 percent buoyed by expectations that the ECB still has further to go in raising interest rates, analysts said.

The International Monetary Fund called on the ECB on Friday to keep raising interest rates until the middle of 2024 and on EU finance ministers to tighten fiscal policy, in concerted action to bring down high inflation.

“Investors favor currencies that can offer both an ongoing domestic tightening cycle and still some room for a hawkish surprise at the coming meetings,” said ING analysts.

“In that sense, the euro is one of the very few currencies that can offer this combination at the moment.”

In the wider currency market, the US dollar rose broadly on Friday, drawing support from data pointing to still-sticky inflation, which reinforced expectations for a 25-basis-point rate hike at next week’s FOMC meeting.

The US dollar index gained 0.5 percent to 101.93, rebounding from a near two-week low struck on Wednesday.

However, the index remained on track for a monthly loss of close to 0.8 percent, after having fallen about 2.3 percent in March.

Data released on Thursday showed that while US economic growth slowed more than expected in the first quarter, consumer spending, which was accompanied by a rise in inflation, accelerated.

“The Fed is widely expected to hike again next week but with inflation remaining sticky, we expect the Fed to stay on hold for the remainder of the year, dashing hopes of a policy pivot in (the second half),” said analysts at Societe Generale.
Newsletter

Related Articles

0:00
0:00
Close
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
×