After the Bank of Japan kept interest rates unchanged, the yen held its gains and its safe-haven qualities reemerged

(1) After the Bank of Japan maintained interest rates as expected and indicated for the first time that the inflation trend had reached 2%, the yen held onto its gains against the US dollar. (2) Following the committee's 8-to-1 vote in favor of the decision, the yen rose about 0.24% against the US dollar to 157.34, showing that the yen is regaining its traditional safe-haven status. (3) In recent years, wide interest rate differentials and Japan's massive overseas investment flows have often prevented the yen from acting as a safe haven during times of market stress. (4) According to Goldman Sachs strategists, the yen is becoming a more effective tool for hedging against AI-driven market shocks, as changes in Japan’s policy environment have reduced the risk of significant depreciation when global yields rise.