Dollar Surges as BOJ Rate Hike Fails to Impress

The US dollar surged against the yen after two policymakers at the Bank of Japan dissented from a widely expected decision to raise interest rates, raising doubts about further hikes.

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

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

The US dollar rose 0.5% against the yen, reaching a two-week high of 158.05 yen and setting its largest weekly rally since October 2025.