The Japanese yen is sitting in a holding pattern against its G-10 peers ahead of Bank of Japan Governor Kazuo Ueda’s scheduled remarks at the Kisaragi-kai Meeting on June 3.
The BOJ’s April 28 decision to hold its policy rate at 0.75% split 6-3, the widest margin under Ueda’s leadership, with three board members pushing for a hike. That division has reignited speculation that a move to one percent could come as early as the June meeting.
A central bank at a crossroads
The BOJ revised its core inflation forecast for fiscal year 2026 upward to 2.8%, driven largely by global energy supply disruptions stemming from ongoing geopolitical conflicts including tensions in Iran.
Japan conducted a yen-buying intervention estimated at up to $35 billion in late April and early May, marking the country’s first such move in nearly two years. The USD/JPY pair traded near the 155-160 range in May, with the yen quickly surrendering gains from the intervention.
