BoJ Hikes Rates, Dovish Tone Weighs on JPY

The Bank of Japan (BoJ) raised its benchmark interest rate by 25 basis points to 1.25%, as expected, in a decision made by a 7-2 vote.

In a press conference following the announcement, BoJ Governor Ueda struck a dovish tone, clarifying that the central bank's objective is now to stabilize underlying inflation at around 2%.

This move led to increased pressure on the Japanese yen, with USD/JPY rising by approximately 1.3% and currently trading within a range of 155.87-158.06.