BOJ Rate Hike Sparks Yen Collapse

The Bank of Japan (BOJ) has raised its overnight rate as widely expected, but the Japanese yen plummeted by 1.25% against the US dollar.

Despite the rate hike, the decision was made on a 7-2 vote, and the odds of another move in December were trimmed to above 80%.

The PBOC continued to signal its acceptance of a stronger yuan, fixing the dollar lower for an eighth consecutive session and hitting a new three-year low.