Japanese Yen Slides Despite ¥15.4 Trillion Intervention Effort

The Japanese Yen continues to slide after the Bank of Japan's split vote on its rate increase. The USD/JPY pair has risen for a fifth session in six, trading just below 157.50. This comes despite the BoJ raising its rate to 1.25% from 1% on September 18, the highest since 1995.

The decision was not unanimous, with two board members voting against the increase, citing low inflation and a slow economy as reasons for their dissent. The core inflation rate for August came in at 1.7%, down from 1.8%. This has made it harder for traders to believe that more increases are on the horizon.

Japan spent ¥15.4 trillion buying Yen between July 30 and August 26, its largest monthly amount on record. The US also joined in on July 31, for the first time since 1998. Despite this intervention, the USD/JPY pair is now trading around where it was at the end of July 31.