BOJ Rate Hike Fails to Boost Yen, Japan Conducts Rate Checks

The Bank of Japan's interest rate hike to 1.25% on Friday failed to boost the yen, prompting Japanese authorities to conduct rate checks in the FX market.

Nikkei newspaper reported that the Finance Ministry conducted these checks, which are viewed as a precursor for currency intervention.

A rate check involves asking banks for currency quotes to gauge market conditions. The weak yen has become a headache for Japanese policymakers by increasing the cost of importing fuel and raw materials, thereby pushing up households' living costs and broader inflation.

Finance Minister Satsuki Katayama said that Japanese authorities would not hesitate to conduct further coordinated exchange-rate intervention.