Bank of Japan Rate Hike Fails to Boost Japanese Yen

The Bank of Japan's rate hike was not enough to boost the Japanese Yen, despite expectations that it would. The bank raised its policy rate to 1.25%, effective from 24 September, but the Yen weakened in response.

Rabobank had forecast a stronger US Dollar (USD) against the Yen, with a target of 154.00 within three months. However, the pair rose 0.46% on Friday and 2.19% over the week, making that target more challenging to reach.

The bank's optimism for Japan's economic reforms is based on stronger wages and renewed domestic inflation. Governor Kazuo Ueda said 'We don't assume a specific pace for further interest rate hikes,' reflecting the vulnerability Rabobank had identified in its research.