Dollar Surges Against Yen After BOJ's Disappointing Rate Hike

The US dollar experienced a surge against the yen on Friday after two Bank of Japan policymakers dissented from a widely expected interest rate hike, casting doubt among traders about further increases.

The BOJ raised rates to their highest level in 31 years at 1.25 percent but failed to boost the Japanese currency due to a perceived lack of hawkish guidance.

This decision follows the Federal Reserve's hawkish message earlier this week, clearing the way for further dollar strength, according to strategists.

The US dollar rose by 1.2 percent against the yen to its highest level in two weeks at 157.897 yen, with some analysts attributing it to the BOJ's underwhelming response.