The Bank of Japan (BoJ) raised its policy interest rate by 0.25 percentage points on Friday. The 1.25% rate marks the highest borrowing costs for the nation since 1995. A 7-2 split vote on the policy board suggests future tightening will remain gradual.
The Japanese yen weakened against the U.S. dollar as prospects for aggressive near-term hikes diminished. This shift fueled broad-based strength in the dollar index. A stronger dollar increases the cost of silver for buyers using other currencies.
Silver prices faced downward pressure following the decision. Macroeconomic currency shifts currently drive the metal's trajectory. These shifts overshadowed a quiet day for specific supply and demand news.