[DigitalToday reporter Chi-gyu Hwang (황치규)] The Bank of Japan kept its benchmark interest rate at 1.0%. The yen rose as much as 3.5% intraday against the dollar amid speculation about large-scale foreign exchange market intervention. Cointelegraph reported on July 31 local time that the BOJ decided to maintain the unsecured overnight call rate at around 1.0%.

Eight of the 9 policy board members voted to hold, while only Hajime Takata (다카타 하지메) proposed a 0.25 percentage point increase. Japan's benchmark rate stayed at its highest level since 1995.

Volatility in the foreign exchange market also picked up just before the rate decision. Based on TradingView, the yen rose as much as 3.5% against the dollar on July 30. The BOJ has not issued an official stance on recent exchange-rate moves, but the market is interpreting the rebound as a result of central bank intervention.

Moves in South Korea's financial markets also dovetailed. After a sharp selloff led by semiconductor stocks, South Korean shares rebounded sharply and the won rose about 1%. The possibility of joint intervention by the BOJ and South Korea's central bank was also raised. Min-hyuk Lee (이민혁), an analyst at KB Kookmin Bank, told local media that the won and the yen have a strong correlation, and that joint intervention could amplify the effect.