BOJ Rate Hikes Fail to Stabilize Yen Amid US Interest Rate Pressure

The Japanese economy is facing increasing uncertainty as the yen continues to weaken despite recent interest rate hikes by the Bank of Japan (BOJ). The dollar-yen exchange rate has remained relatively stable, standing at around 158 yen to the dollar on Friday, according to the BOJ.

The BOJ raised its policy interest rate by 0.25 percentage points to 1.25 percent on September 18 in an effort to stabilize the yen. However, this move may not be enough to address the underlying economic challenges facing Japan.

The US Federal Reserve's recent interest rate hike has created a wide interest-rate gap between the two countries, putting additional pressure on the yen. The BOJ may need to raise interest rates further to support the currency, but this could come with significant costs for the Japanese economy.