Dollar Jumps Above 157 Yen as BOJ Raises Interest Rate

The US dollar surged above 157 yen on Friday after two Bank of Japan policy board members voted against an interest rate hike, while the Nikkei stock index extended gains following the policy decision.

The BOJ raised its policy interest rate to 1.25 percent from 1.0 percent as widely expected, but the opposition from the two members, who were appointed under Prime Minister Sanae Takaichi's administration, was seen as a sign of government reluctance toward further rate hikes.

Masafumi Yamamoto, chief currency strategist at Mizuho Securities Co., said that while the opposition was not a surprise, the outcome may be seen as dovish, as there were no arguments about a larger rate hike.