BOJ Rate Hike Sparks Yen Selloff Amidst Internal Resistance

The Bank of Japan's (BOJ) decision to raise its policy rate by a quarter point has had an unexpected consequence - the yen is plummeting. The currency sank as much as 1.3% against the dollar, partly undoing efforts by Japanese and US authorities to bolster it.

The BOJ raised its policy rate from 1.00% to 1.25%, but two board members, Toichiro Asada and Ayano Sato, voted against the hike. This internal resistance suggests that there's still a long way to go in tightening monetary policy in Japan.