NEW YORK: The yen was on track for a third consecutive daily gain on Friday after the Bank of Japan left rates unchanged and upgraded its inflation outlook, while declining US Treasury yields weighed on the dollar.
The BOJ left its main rate at 1.25 percent in a widely anticipated move, but stressed that its policy has entered a new, more hawkish phase open to raising rates once every few months.
The yen strengthened to a high of 157.89 per dollar, set for a 0.11 percent gain in October.
The BOJ wraps up a week of central bank decisions, with the European Central Bank, the US Federal Reserve and the Reserve Bank of New Zealand all leaving interest rates unchanged as they bide their time amid stubborn inflation and tightening financial conditions.
The euro was down 0.17 percent at USD1.1163 and was headed for a second straight monthly loss in October. It hit its lowest since May 2025 on Thursday, after the ECB left rates unchanged and indicated higher bond yields had tightened financial conditions, initially prompting traders to lower their expectations for a hike in December.
The Bank of England and the Reserve Bank of Australia will be in focus next week.
Sterling strengthened 0.14 percent to USD1.3394. The Australian dollar strengthened 0.1 percent versus the greenback to USD0.7034.
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