Institutional analysis: The Bank of Japan’s interest rate decision is approaching, and the JPY weakens

The JPY weakened against most G10 and Asian currencies ahead of the Bank of Japan‘s interest rate decision today. Vishnu Varathan, head of economics and strategy at Mizuho Bank’s Asia and Oceania treasury division, said the BOJ’s dovish stance may not be deterred by hawkish signals from the European Central Bank and Federal Reserve last week. The Bank of Japan is poised to maintain its pro-accommodative rhetoric, which could pose some downside risk for the yen.