Currency Buzz: Yen drifts lower as BoJ stays patient and slows bond purchases

The Japanese yen slipped toward 145 per dollar on Tuesday, marking its third straight drop after the Bank of Japan kept its key rate unchanged at 0.5 percent, the highest level since 2008. The decision, in line with expectations, shows the central bank?s cautious stance amid global tariff uncertainty. To unwind years of massive stimulus, the BoJ confirmed it will reduce government bond purchases by 400 billion yen each quarter until March 2026, followed by an extra 200 billion yen cut per quarter from April 2026. By early 2027, monthly bond buying could fall to 2 trillion yen, signaling a gradual return to policy normalization.

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