BOJ Rate Hike Falls Flat, Yen Slumps to Two-Week Low

The Japanese yen slumped to a two-week low against the US dollar after the Bank of Japan raised interest rates, but the move was seen as underwhelming by traders.

Two policy makers at the BOJ dissented from the decision to raise rates to their highest level in 31 years, which was set at 1.25%.

The dissenting votes raised doubt among traders about the likelihood of further hikes and failed to boost the currency as they had expected more explicitly hawkish guidance.

As a result, the US dollar rose 1.2% against the Japanese currency to a two-week high of 157.84 yen, its biggest daily increase versus the yen since December.