Why Japanese Yen (JPY) fell 1.13%
Japanese Yen (JPY) fell 1.13% on July 31, 2026 — BOJ holds as yen intervention fades.
What happened
The Bank of Japan held rates steady while official yen-supporting intervention faded; China's PMI miss added to macro headwinds, leaving the yen under pressure against the dollar.
Why it moved
A dovish hold signals the BOJ is not yet ready to tighten, while the retreat of intervention removes a key floor under USD/JPY; weaker China PMI dims growth expectations across Asia, further weakening the yen's carry…
Why it matters
Japan (Yen & Equities): BOJ policy divergence from the Fed, combined with fading official support and slowing regional growth, creates structural headwinds for the yen — the yen is repricing downward as the carry trade…
What would break the thesis
An earlier-than-expected BOJ rate hike or a return of coordinated yen-support intervention could reverse the move; if the Fed signals more rate cuts or geopolitical risk spikes, safe-haven flows could stabilize the yen…