Forex
BOJ Rate Hike Falls Short as Markets Expect Less Hawkish Action
The Japanese yen weakened sharply on Friday, with the USD/JPY pair rising 0.7% to 157.13 yen after the Bank of Japan's interest rate hike.
The BOJ raised its policy rate by 25 basis points to 1.25%, its highest level since 1995, but the move was largely priced in by markets, with a 99% probability implied by interest rate futures ahead of the decision.
Two members of the BOJ's rate-setting board called for a hold, reflecting a growing rift between Tokyo and the BOJ over accommodative financial conditions.