Yen rises up to 3.5% as Korea joins intervention<\/strong><\/p>\n In its latest statement<\/a>, the Bank of Japan (BoJ) revealed broad consensus among officials for holding rates at current levels \u2014\u00a0an outcome that markets had anticipated in advance<\/a>.<\/p>\n \u201cThe Bank will encourage the uncollateralized overnight call rate to remain at around 1.0 percent,\u201d it confirmed.<\/p>\n Eight out of nine members of the bank\u2019s Policy Board voted for the outcome, with only Hajime Takata proposing a 0.25% rate hike.<\/p>\n Japan benchmark interest rate (screenshot). Source: BoJ<\/em><\/p>\n Japan\u2019s benchmark rate remains at its highest levels since 1995, with the BoJ meeting result coming just hours after the yen saw snap volatility. Against the US dollar, the currency rose by as much as 3.5% on Thursday, per data from TradingView, in a move that has widely been attributed to central bank intervention<\/p>\n JPY\/USD one-day chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n The BoJ did not officially comment on the latest moves, which coincided with a significant rebound in the South Korean stock market after days of heavy selling<\/a> concentrated on semiconductor stocks. The Korean won was up by around 1% at the time of writing amid reports of a joint intervention between the BoJ and Korea\u2019s central bank. Analysts referenced \u201ctightly aligned\u201d mutual interests of the two countries as facilitating the joint move.<\/p>\n \u201cThe interests of each country aligned. For Korea-Japan cooperation, the won and the yen are so tightly coupled that a joint intervention could double the impact,\u201d Lee Min-hyuk, an analyst at KB Kookmin Bank, commented<\/a> to local media outlet Straits Times.<\/p>\n The Nikkei newspaper earlier noted<\/a> that the US had engaged in rate checks \u2014 a form of soft intervention which can precede a more pronounced operation \u2014 during Thursday\u2019s trading session, resulting in speculation over a three-way coordinated move.<\/p>\n \u201cThe key signal from last night\u2019s move is that MOF remains uncomfortable with excessive yen weakness. The line in the sand is probably better viewed as a zone around 162-165 rather than a specific level,\u201d Masahiko Loo, senior fixed income strategist at asset manager State Street Investment Management, told<\/a> CNBC.<\/p>\n BoJ sees CPI inflation headwinds increasing in 2026<\/strong><\/p>\n As the yen came off its highest levels against the dollar since 1986, the BoJ warned of future upside in the Consumer Price Index (CPI) inflation.<\/p>\n Related: <\/strong><\/em>Rate path still divides investors: Five things to know in Bitcoin this week<\/strong><\/em><\/a><\/p>\n \u201cThe year-on-year rate of increase in the consumer price index […] is likely to accelerate to a level clearly above 2 percent from the second half of fiscal 2026,\u201d it stated in its latest quarterly Outlook for Economic Activity and Prices<\/a> report.<\/p>\n In addition to rising prices of durable goods, the report referenced \u201cwaning of the effects of high crude oil prices\u201d due to the ongoing US-Iran war<\/a> and closure of the Strait of Hormuz oil-transit route.<\/p>\n Gyrations in the yen have remained an important consideration in crypto trading circles ever since the \u201cunwinding\u201d of the yen carry trade<\/a> sparked major Bitcoin and altcoin downside pressure in August 2024.<\/p>\n Earlier this year, Arthur Hayes, former CEO of crypto exchange BitMEX, suggested that the combination of a weak yen and rising Japanese bond yields may cause investors to move away from low-yielding US bond allocations. He linked central bank liquidity interventions to positive moves in crypto markets.<\/p>\n \u201cThis discussion of Japanese financial markets is important because for Bitcoin to exit its sideways funk, it needs a healthy dose of money printing,\u201d he wrote in a blog post.<\/p>\n In December 2025, Hayes predicted that USD\/JPY could rise as high as 200<\/a>.<\/p>\n Related:<\/strong> Bitcoin price<\/a> \u00b7 BTC live chart<\/a> \u00b7 Ethereum price<\/a> \u00b7 ETH gas fee<\/a> \u00b7 Bitcoin price today<\/a> \u00b7 Top 10 cryptocurrencies<\/a><\/p>\n![\"\"](\"https:\/\/s3-images.ctmedia.io\/media\/content\/pasted-image-2212.png\")
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