BoJ Rate Hike Fails to Stem Yen Decline as USD/JPY Surges
The Japanese Yen continued its downward trend after the Bank of Japan's (BoJ) recent rate hike, despite the increase to 1.25% being the highest since 1995.
Two BoJ board members, Asada and Sato, voted against the rate hike, citing that inflation under 2% and an economy that hasn't sped up don't justify an increase.
The Fed raised its rate to 3.75-4.00% on September 16, leaving a gap of 2.50 to 2.75 points between the two central banks' rates.
Japan spent ¥15.4 trillion buying Yen between July 30 and August 26, with the US also participating in buying Yen for the first time since 1998 on July 31.
The USD/JPY pair has risen for a fifth session in six, trading just below 157.50, with analysts expecting a strong reading from Japan's Jibun Bank Purchasing Managers Index (PMI) to support another BoJ increase and push the Yen further down.