Japan, South Korea buy currencies as BOJ holds rates at 1%
What's new: The yen briefly jumped to 157.8 per dollar before sliding back near 160, underscoring doubts intervention alone can reverse the rout.
Japan and South Korea stepped into currency markets late Thursday, buying yen and won in a rare coordinated push to counter sharp weakness against the dollar, while the Bank of Japan kept its policy rate unchanged at 1% on Friday. A market source said Tokyo bought yen and sold dollars in New York trading, with the Nikkei reporting large-scale intervention and US rate checks. The BOJ signaled it still expects to raise borrowing costs further, though board member Hajime Takata dissented in favor of a hike to 1.25%. The yen briefly strengthened to 157.8 per dollar before falling back above 160, suggesting traders remain unconvinced intervention can offset pressure from higher US rates and energy-driven inflation.