The Japanese yen retreated in Asian trading on Friday against a basket of global currencies, extending its movement in negative territory for a third consecutive session against the US dollar, after the Bank of Japan kept interest rates unchanged in line with expectations and said it is in a phase of assessing the impact of its most recent monetary tightening.

The Bank of Japan raised its economic growth and inflation forecasts for the fiscal year ending in March 2026, signaling readiness to continue tightening monetary policy and gradually increasing borrowing costs. However, markets continue to rule out an interest rate hike at the March meeting.

Price Overview

• Japanese yen exchange rate today: The dollar rose against the yen by 0.25% to 158.74, from an opening level of 158.34, with the session’s low recorded at 158.32.

• The yen ended Thursday’s session down about 0.1% against the dollar, marking a second consecutive daily loss, amid easing concerns over global geopolitical tensions related to Greenland.

Weekly Trading

• Over the course of this week, which officially concludes at today’s settlement, the Japanese yen is down about 0.45% against the US dollar so far, on track for a fourth consecutive weekly loss.

• Japanese Prime Minister Sanae Takaichi called for early elections in February and pledged tax cuts, pushing Japanese government bond yields to record levels.

Bank of Japan

In line with most market expectations, the Japanese central bank on Friday kept its benchmark interest rate unchanged at 0.75%, the highest level since 1995.

The decision comes ahead of early elections that could see Prime Minister Sanae Takaichi step up calls for monetary easing and fiscal support.

The vote in favor of keeping rates unchanged passed with eight members supporting the decision, against one member who called for a 25-basis-point hike to 1.0%. The bank opted to pause temporarily to assess the impact of the most recent rate hike implemented in December 2025.

In its monetary policy statement, the Bank of Japan said it will “adjust monetary policy flexibly” if economic conditions evolve in a way that ensures a stable and sustainable achievement of its 2% inflation target.

Economic Outlook

• The Bank of Japan raised its economic growth forecast for the fiscal year ending in March 2026 to 0.9%, up from 0.7% in October 2025. It also lifted its GDP growth forecast for fiscal year 2026 to 1%, from 0.7%.

• Core inflation expectations (excluding food and energy) were revised higher for fiscal year 2026 to around 1.9%, a level very close to the bank’s 2% target.

Japanese Interest Rates

• Following the meeting, market pricing for a quarter-point rate hike by the Japanese central bank at the March meeting remained below 20%.

• To reprice these expectations, investors are awaiting further data on inflation, unemployment, and wages in Japan.

Kazuo Ueda

Later today, Bank of Japan Governor Kazuo Ueda is scheduled to speak about the outcome of the monetary policy meeting, with his remarks expected to provide additional clarity on the future path of policy normalization and interest rate hikes in Japan over the course of this year.

Inflation edged slightly further away from the Federal Reserve’s target in November, but came in line with expectations, according to the central bank’s preferred measure released on Thursday.

The Personal Consumption Expenditures (PCE) price index, published by the US Department of Commerce and used by the Federal Reserve as a key forecasting tool, showed inflation running at an annual rate of 2.8% in November, both on a headline and core basis, matching Dow Jones estimates.

The Bureau of Economic Analysis (BEA) reported that October’s annual reading stood at 2.7% for both headline and core inflation, with the core measure excluding volatile food and energy prices.

On a monthly basis, prices rose by 0.2% in both October and November. The data for the two months were released together due to disruptions caused by the US government shutdown, which temporarily halted official data collection and reporting.

Alongside the inflation figures, the report showed personal income rising by 0.1% in October and 0.3% in November, with the November increase coming in 0.1 percentage point below expectations.

Personal consumption expenditures, a key indicator of consumer spending, increased by 0.5% in both months, in line with forecasts for November.

The personal saving rate rose to 3.5% in November, down 0.2 percentage point from the previous month.

November price data showed a 0.2% increase in both goods and services prices. Food prices were unchanged, while energy costs climbed 1.9% after falling 0.7% in October.

The report was released on the same day the Bureau of Economic Analysis said gross domestic product grew at an annualized rate of 4.4% in the third quarter, according to the second and final estimate. Separately, the US Department of Labor reported that weekly jobless claims are trending toward their lowest levels in nearly two years.

Taken together, the data suggest the US economy continues to expand, with consumer spending still outpacing inflation, despite some cooling in the labor market.

Markets expect the Federal Reserve to leave interest rates unchanged at its policy meeting next week, following three consecutive rate cuts in 2025.

Futures traders currently see no more than two rate cuts this year, as policymakers assess the impact of last year’s monetary easing alongside persistent inflation pressures and ongoing geopolitical uncertainty.

Copper prices traded within a narrow range on Thursday, after inventories at US Comex-approved warehouses rose above 500,000 metric tons for the first time, amid ongoing concerns over tariffs.

The most-traded copper contract on the Shanghai Futures Exchange rose 0.07% to 100,490 yuan ($14,433.03) per metric ton by 02:55 GMT.

At the same time, the benchmark three-month copper contract on the London Metal Exchange gained 0.11% to $12,824.50 per ton.

Copper inventories on the COMEX climbed to 554,904 short tons, equivalent to 503,400 metric tons, as of January 20.

Copper prices on Comex have been trending lower, as arbitrage opportunities between Comex and LME prices fade. Copper inventories have also increased within the US warehouse system linked to the London Metal Exchange, particularly in New Orleans.

Sucden Financials said in a research note that copper prices on the LME have moved above those on Comex, prompting shipments of the metal back into LME warehouses and lifting inventory levels. The firm added that the market is shifting from tight supply conditions toward a more balanced environment, reducing the sense of urgency that previously underpinned the rally.

Despite this, copper remained supported by supply concerns stemming from disruptions at mines, as well as US-bound flows driven by tariffs. However, the strength of demand at elevated price levels remains in question.

In a related development, US President Donald Trump said on Wednesday that he would roll back Greenland-related tariffs on European allies, easing tensions. This helped push gold prices down from record highs and lifted US equities.

Base metals performance on the Shanghai Futures Exchange

Aluminum: +0.08%

Zinc: +0.25%

Lead: unchanged

Nickel: +0.38%

Tin: +1.29%

Metals performance on the London Metal Exchange

Aluminum: −0.03%

Nickel: −0.45%

Tin: −0.42%

Zinc: +0.35%

Lead: +0.20%

Bitcoin edged slightly higher on Thursday, but struggled to reclaim the $90,000 level, as signs of easing geopolitical tensions linked to US demands over Greenland provided only limited support to cryptocurrency markets.

Digital asset prices lagged well behind the broader rally in global equities, with technology stocks — typically seen as a leading indicator for crypto moves — posting far stronger gains.

Bitcoin was little changed at $90,001.7 by 1:19 a.m. US Eastern Time (06:19 GMT).

Bitcoin gets brief support from Trump–Greenland de-escalation

Bitcoin jumped sharply on Wednesday after US President Donald Trump said he would not impose tariffs on Europe over his Greenland-related demands, and announced that a framework agreement on the issue had been reached.

However, the world’s largest cryptocurrency failed to hold on to its gains, gradually slipping back below the $90,000 mark shortly afterward. This came as broader markets, driven by risk-on sentiment, continued to advance, while traditional safe havens such as gold retreated.

Cryptocurrency markets have remained largely sidelined, particularly among retail investors, following a late-2025 flash crash that significantly damaged sentiment toward the sector.

Markets have also grown increasingly concerned about the potential for further selling pressure from crypto treasury companies, as prolonged weakness in Bitcoin prices could place major corporate treasuries under strain to meet debt obligations.

An announcement by Strategy Inc, listed on the Nasdaq under the ticker MSTR, that it had purchased $2.13 billion worth of Bitcoin did little to lift sentiment this week.

Data from Coinglass showed that Bitcoin continued to trade at a price discount within US markets.

Investor sentiment was further weighed down after US lawmakers earlier this month postponed a major bill aimed at establishing a regulatory framework for cryptocurrencies.

BitGo raises $213 million in US IPO

Cryptocurrency custody firm BitGo on Wednesday priced its US initial public offering above the indicated range, raising $212.8 million.

The offering valued the company at close to $2 billion, signaling that investor appetite for crypto-related equities remains strong following a robust 2025.

BitGo’s listing and the start of trading in its shares on Thursday are expected to pave the way for other major cryptocurrency firms seeking public listings, with reports suggesting that asset manager Grayscale and trading platform Kraken are considering IPOs in 2026.

Cryptocurrency prices today: altcoins post modest gains

Broader cryptocurrency prices rose on Thursday, though most of the early gains were pared back.

Most altcoins remain under pressure after posting losses in recent weeks. The world’s second-largest cryptocurrency, Ethereum, rose 1.3% to $3,018.71, while XRP added around 2%.