The yen fell to a new 15-year low against the euro on Friday after the Bank of Japan (BOJ) kept ultra-low interest rates and forecast that inflation will slow later this year in contrast with the European Central Bank's (ECB) rate hike on Thursday.

As widely expected, the BOJ maintained its -0.1% short-term interest rate target and a 0% cap on the 10-year bond yield set under its yield curve control (YCC) policy.

The yen fell broadly following the decision and hit a fresh 15-year low of 154.70 per euro , down 0.7% on the day. It was set for the biggest weekly decline against the single currency in three year.

Against the U.S. dollar, the Japanese currency fell 0.6% to 141.22 yen .

Elsewhere, the euro was poised for its best week in three months after the ECB raised borrowing costs to a 22-year high and signalled further rate hikes to come.

The euro flattened at $1.0951 after rising to a one-month high against the dollar, having surged over 1% on Thursday following the rate hike and forward guidance from the ECB.

Sterling edged 0.1% higher at $1.2793 after rising to its highest level since April 2022 as traders similarly ramped up bets that the Bank of England is likely to raise interest rates for the 13th meeting in a row next week.

Source : Reuters