BoJ Rate Hike Falls Flat for Yen Against Dollar

The Bank of Japan raised its policy rate to 1.25% in a widely anticipated move, but the Japanese Yen failed to gain traction against the US Dollar.

Danske Bank's research team notes that the decision was made with a 7-2 vote, with Board members Toichiro Asada and Ayano Sato dissenting.

The central bank emphasized its intention to continue raising rates and adjusting monetary accommodation, but this did not seem to have an immediate impact on the currency market.

Despite modest Japanese inflation and the presence of two government-appointed dissenters, USD/JPY traded above 157.00 following the decision.