BoJ Rate Hike Triggers Yen Weakness Amid Dissent and Hawkish Guidance
The Bank of Japan (BoJ) raised its policy rate to 1.25%, the highest level in 31 years, but the yen weakened instead of strengthening against the US dollar.
The hike was widely expected by markets, which limited any fresh support for the yen and led to a mild 'sell the fact' move higher in USD/JPY, with the pair rising to around 156.70 from 156.25.
A split vote on the policy decision, with two board members dissenting against the hike, contributed to the yen's softer tone.