04:44 AM EDT, 06/14/2024 (MT Newswires) -- The Japanese yen weakened to six-week lows in early European trade on Friday after the Bank of Japan's widely expected move left interest rates unchanged between zero and 0.1%.

USD/JPY topped 158.20 from 156.70 ahead of the central bank's decision.

"Exchange rate moves would have a big impact on the economy and prices," Governor Kazuo Ueda told a post-meeting news conference, according to Reuters. "Recently, the effect on prices likely heightened because of changes in corporate wage- and price-setting behavior."

He added that recent yen declines push up prices, leading the BoJ to closely watch the moves in guiding policy.

The BoJ said it would begin trimming its bond purchases and announce a detailed plan in July on reducing its balance sheet.

The bank will consult market players before deciding on the long-term tapering plan at its next meeting.

"In trimming bond buying, it's important to leave flexibility to ensure market stability, while doing so in a predictable form. The size of reduction will likely be significant. But specific pace, framework and degree will be decided upon discussions with market participants," Ueda added.