Dollar Surges Against Yen Amid BOJ Rate Hike Uncertainty

The US dollar surged against the yen on Friday after two policymakers at the Bank of Japan (BOJ) dissented from a widely expected decision to raise interest rates. The move has raised doubts among traders about the likelihood of further hikes.

The BOJ pushed rates to their highest level in 31 years at 1.25%, but this did not boost the Japanese currency as traders felt there was a lack of explicitly hawkish guidance.

Steven Englander, head of G10 FX research at Standard Chartered, said, 'The lack of hiking punch makes it easier for USD to go higher.'

The US dollar index, which tracks the currency against six major peers, was up 1.2% for the week to around a seven-week high.