Dollar Surges Above 157 Yen on BOJ Rate Hike Decision

The US dollar rose above 157 yen on Friday after two members of the Bank of Japan's policy board voted against an interest rate hike. This unexpected opposition was seen as a sign that the government is hesitant about further rate increases.

The BOJ had raised its policy interest rate to 1.25 percent from 1.0 percent, as widely expected. However, Masafumi Yamamoto, chief currency strategist at Mizuho Securities Co., said the outcome was seen as dovish because there were no arguments for a larger rate hike.

The dollar climbed by around 1 yen to the lower 157 yen range, its highest level in two weeks. The Nikkei stock index also extended gains after the policy decision, briefly surging over 2 percent before finishing at 65,018.95, up 882.70 points or 1.38 percent from Thursday.