BOJ Hikes Interest Rate, Sending Yen into Free Fall

The Bank of Japan (BOJ) has raised its overnight rate as widely expected. This move comes after Governor lifted the rate, causing a significant drop in the Japanese yen by around 1.25% today.

The BOJ's decision is part of a broader trend of central banks adjusting their interest rates to combat inflation and stabilize economies. The US dollar has shown mixed results against most G10 currencies, with the notable exception being the yen.

The Bloomberg US economic data surprise index reached a six-month low in August but has gradually recovered this month.