The Japanese yen weakened toward 160 per dollar on Thursday, hovering at its lowest level since July 2024 when authorities last stepped in to support the currency, as investors awaited the Bank of Japan’s policy decision. The central bank is widely expected to keep its policy rate unchanged but could signal a hawkish bias amid a weak yen and elevated oil prices, which are boosting inflation risks. Oil prices surged again following fresh attacks on energy infrastructure in the Middle East as the Iran war continues. The yen also faced pressure from a strong dollar after the US Federal Reserve signaled it will hold rates until inflation shows signs of easing again. Meanwhile, Prime Minister Sanae Takaichi is set to meet US President Donald Trump later today to discuss potential economic and military cooperation, navigating a delicate diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz before retracting the request.