Wide gaps in interest rates could bring back the yen carry trade, in which investors borrow in Japan and deploy the funds in higher-yielding markets.

The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points, bringing the federal funds rate to 4.25%-4.5%.

The Bank of Japan kept interest rates unchanged on Thursday and its governor offered few clues on how soon it could push up borrowing costs, sending the yen and bond yields tumbling on fresh doubts over the near-term chances of a rate hike.

The yen weakened against the dollar Thursday after the Bank of Japan kept borrowing costs unchanged, extending a retreat that came after the US Federal Reserve forecast fewer rate cuts.

The Bank of England wrapped up a big year of central bank rate cuts by keeping rates steady on Thursday December 19 - a day after the Federal Reserve eased policy but suggested it would be more cautious in 2025.

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The Bank of Japan on Thursday held its benchmark interest rate steady at 0.25%. The decision comes a day after the U.S. Federal Reserve cut rates by 25 basis points ...

Explore why the USD/JPY pair has rallied this week after the BoJ and the Federal Reserve interest rate decision

The Federal Reserve revealed its rhythm for 2025: just two rate cuts. In a recent interview, Mary Daly, president of the Federal Reserve Bank of San Francisco, said they are “very comfortable” with the decision.

The Japanese yen is trading near its lowest levels in more than three decades, reviving speculation of another round of government intervention. Even after the Bank of Japan raised interest rates in March for the first time since 2007 and again in July,

The dollar edged higher on Tuesday in thin holiday trading as the expected slower path of interest rate cuts from the U.S. Federal Reserve compared with other global central banks continued to command market direction.