BoJ October Hike Bets Slashed as Yen Weakens

The Japanese Yen (JPY) is weakening as traders reassess their bets on an October rate hike by the Bank of Japan. According to a recent summary of the BoJ's September meeting, traders have cut their expectations for a hike in October, with market pricing now about half what it was just two days ago.

The BoJ raised its interest rate to 1.25% on September 18 by a vote of 7-2 and signaled that future hikes would come at three-month intervals, effectively shifting the next expected move from October to December.

This shift in expectations has had a ripple effect on the USD/JPY exchange rate, which is now trading just above 158.00 and poised for its third consecutive weekly gain.