Bank of Japan policy rate kept; Governor Ueda takes a cautious stance on tightening, sending the dollar/yen sharply up to the 145 level.

【5/1Market Overview

Tokyo time, at the Bank of Japan Monetary Policy Meeting, the policy rate was kept at0.50%4monthly outlook report, the economic growth and price outlook were revised downward from the previous (1month). Following expectations of an early BOJ rate hike fading, USD/JPY rose past144yen to 144.29yen. BoJ Governor Kuroda stated at a press conference that, “due to the impact of U.S. tariff policies and other factors, the uncertainty surrounding the central outlook has become greater than before.” He also noted that “the likelihood of realizing the outlook is not as high as before,” and that “the timing of the next rate hike will vary depending on whether the outlook changes.” The USD/JPY temporarily reached144.74yen. In European time, while the euro area countries, including Germany and France, were closed for Labor Day, USD/JPY traded in the low 144 yen range.NYtime, following the BOJ policy meeting results and Governor Kuroda’s press conference, expectations grew that the BOJ would delay further hikes, leading to yen selling and dollar buying.4月 USISMManufacturing Index surprised to the upside, pushing USD/JPY temporarily to145.73yen and4/10since its previous high.

【5/2Market View