20th December 2025 – (Tokyo) The yen slid to its weakest level in about a month on Friday, trading in the ¥157 per U.S. dollar range and edging towards levels that could prompt official intervention, after the Bank of Japan raised interest rates but gave no clear guidance on the trajectory of future increases.
The currency depreciated sharply following the BOJ’s widely anticipated decision to lift its policy rate to 0.75 per cent, the highest in three decades. Losses deepened after Governor Kazuo Ueda, at a post‑meeting press conference, offered scant detail on the likely timing or pace of additional tightening.
The dollar climbed as high as ¥157.67, its strongest in a month, and was on track for its biggest one‑day advance since early October, according to Reuters data. Finance Minister Satsuki Katayama said late Friday that authorities would “respond appropriately” if the yen exhibited excessive moves in the foreign‑exchange market.
Analysts cautioned that with trading expected to thin over the Christmas holidays, yen volatility could intensify. “Intervention risks over the quieter Christmas period are becoming a more realistic prospect,” Nikkei Asia quoted Derek Halpenny of MUFG as saying.
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