Yen slumps after BOJ hikes rates as expected
The yen weakened after Friday’s data showed Japan’s core inflation held near the central bank’s 2% target in August, underscoring persistent price pressures.
The Japanese yen experienced a significant drop against its major peers in Asian trading on Friday. This decline came after the Bank of Japan (BoJ) hiked interest rates, an expectation that had already been widely anticipated. The currency weakened by as much as 0.8% to 157.145 yen per dollar, marking its weakest level since September 3.
Despite the rate hike, the decision was not unanimous, with two board members voting to maintain the current policy. This lack of consensus raised eyebrows in the market, as noted by Ray Attrill, head of FX strategy at National Australia Bank in Sydney. The market will now closely monitor Governor Kazuo Ueda's press conference, where he will provide further explanation of the central bank's decision and its implications for future monetary policy.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Yen slumps after BOJ hikes rates as expected freemalaysiatoday.com
- Yen slumps after BOJ hikes rates as expected investing.com
