{
  "id": 8178150,
  "title": "Asia FX mixed as yen slides despite BOJ rate hike",
  "url": "https://urgent.news/2026/09/18/asia-fx-mixed-as-yen-slides-despite-boj-rate-hike",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T05:07:17.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/forex-news/asia-fx-mixed-as-yen-slides-despite-boj-rate-hike-4906678"
  },
  "original_language": "en",
  "account": "Asian currencies experienced a mixed performance on Friday as the Japanese yen weakened, despite the Bank of Japan raising interest rates to a 31-year high. Meanwhile, a hawkish outlook from the U.S. Federal Reserve helped support the dollar, while investors looked at the trajectory of global monetary policy. The U.S. Dollar Index remained steady at 100.23, hovering near a seven-week high. The Japanese yen's USD/JPY pair rose 0.7% to approximately 157 yen following the Bank of Japan's 25 basis point rate hike to 1.25%, as per a 7-2 vote. Although the decision was anticipated, two dissenting policymakers signaled a more dovish tone for the central bank. Analysts noted that with the two most hawkish Board members set to leave next July, the Board's composition may become even more cautious. Market participants awaited Governor Kazuo Ueda's post-meeting press conference for insights on the timing and magnitude of further rate hikes. Japan's core consumer prices, excluding volatile fresh food and fuel, rose 1.7% from a year earlier, slightly below the 1.8% increase expected by economists and unchanged from the previous month. Despite the softer-than-expected headline core reading, inflation remained close to the Bank of Japan's 2% target, offering limited immediate impetus for markets to price a faster tightening pace. The greenback benefited from expectations of additional Fed rate hikes next month, with Fed funds futures pricing a 53% probability of a quarter-point increase at the upcoming meeting. The Fed raised its policy rate by 25 basis points on Wednesday to a range of 3.75%-4.00%, with projections pointing to another increase later in the year. Among other Asian currencies, the Australian dollar's AUD/USD pair climbed 0.3%, while the Chinese yuan's onshore pair USD/CNY edged down 0.2%, and the South Korean won's USD/KRW pair increased by 0.4%. The Singapore dollar's USD/SGD and the Indian rupee's USDINR remained largely flat. Elevated energy prices and higher U.S. yields also put downward pressure on investor sentiment.",
  "summary": null,
  "key_points": [
    "Japanese yen weakened despite BOJ rate hike to 1.25%",
    "U.S. Dollar Index steady at 100.23, near seven-week high",
    "Australian dollar climbed 0.3% on Fed rate hike expectations"
  ],
  "editors_take": "The Bank of Japan's rate hike has not stemmed the yen's decline, suggesting markets see limited further tightening, while a hawkish US Fed outlook continues to support the dollar.",
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Forex Today: Japanese Yen falls despite BoJ's rate hike; Fedspeak in focus",
        "url": "https://urgent.news/2026/09/18/forex-today-japanese-yen-falls-despite-bojs-rate-hike-fedspeak-in",
        "published": "2026-09-18T05:49:53.000Z"
      },
      {
        "outlet": "CNA - Business",
        "title": "BOJ rate hike signals faster pace of tightening amid inflation risks, weak yen: Economists",
        "url": "https://urgent.news/2026/09/18/boj-rate-hike-signals-faster-pace-of-tightening-amid-inflation-risks",
        "published": "2026-09-18T06:16:44.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}