BoJ Hike Leaves Policy Differential Unchanged at 262.5 Basis Points
The USD/JPY pair traded at 160.2710 on September 2, up 0.17% from the previous session.
The yen has weakened by 1.97% over the past month and 8.31% over the past year.
A Bank of Japan (BoJ) hike to 1.25% and a Federal Reserve hike to 4.00% leave the differential unchanged at 262.5 basis points.
Tokyo core CPI hit 2.0% in August, a third straight monthly acceleration, as the 10-year Japanese government bond crossed 3% for the first time ever.
The persistent wide differential keeps the yen carry trade active and supports the case for further near-term USD/JPY appreciation.