On Friday, before the Bank of Japan (BoJ) decision was announced, the currency was trading above 155 yen to the dollar, but it briefly topped 158.44 early Monday. The Japanese central bank’s policy board voted unanimously on Friday to keep its benchmark interest rate unchanged, a month after it raised its short-term policy rate to 0.1%, its first hike in 17 years. “It is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan’s economic activity and prices,” the BoJ said in a statement. Hours earlier, Japan’s finance minister said he was ready to intervene to halt the yen’s sharp decline. “In line with our policy, the government will continue to closely watch currency market moves and take appropriate action as needed,” Shunichi Suzuki told reporters. “We are concerned about the negative side of a weak yen,” the minister said, adding that addressing rising prices was a priority for the Japanese government. A weak yen tends to boost the stock market as it inflates exporters’ overseas profits, but it also increases the cost of importing energy and raw materials, on which Japan relies. The yen has been falling sharply against the dollar and other currencies, largely because of the difference in interest rates between the two countries. The trend has accelerated in recent weeks as the US central bank is not expected to start cutting rates anytime soon. The Japanese government last intervened in October 2022, when the currency was approaching 152 to the dollar. In recent comments, BoJ Governor Kazuo Ueda has indicated that he will consider a policy change if the impact of the weak yen on inflation “cannot be ignored.” Read Also: Inflation? Bank of Japan revises forecast upwards, but maintains interest rates (Portuguese version)