BoJ Hawkish Guidance Lacking as Yen Slumps Against Dollar

The Japanese Yen (JPY) has softened against the US Dollar (USD), reaching around 157.60 during Asian trading hours on Wednesday.

This decline is attributed to a lack of explicitly hawkish guidance from the Bank of Japan (BoJ) following its rate hike last week, which only lifted rates by 25 basis points to 1.25%, its highest level since 1995.

The BoJ's decision was met with dissent from two board members, Toichiro Asada and Ayano Sato, who voted against the hike.

BoJ Governor Kazuo Ueda stated that the central bank wouldn't rule out any particular policy options in advance of board meetings, but his comments were seen as insufficient to support market expectations of aggressive tightening.