BOJ Rate Hike Fails to Stem Yen Decline

The Japanese yen slumped against its major peers in Asian trading on Friday, following a widely-expected rate hike by the Bank of Japan. Despite the BOJ lifting interest rates to their highest in over three decades, the currency weakened as much as 0.8% to 157.145, its weakest since September 3.

According to Ray Attrill, head of FX strategy at National Australia Bank in Sydney, 'They've just clearly underwhelmed versus expectations here.' He added that the lack of a unanimous vote on the rate hike 'really raised eyebrows in the market.'

The yen's softness followed data showing Japan's core inflation held steady near the central bank's target of 2% in August. Attention now turns to Governor Kazuo Ueda's press conference, where he will explain the central bank's decision.