USD/JPY Rises Amid BoJ Hike and Fed Rate Bets

The Japanese Yen (JPY) has continued to slide against the US Dollar (USD), reaching around 157.45 on Monday, a 0.36% gain from the previous day.

This comes despite the Bank of Japan (BoJ) raising its policy rate by 25 basis points to 1.25%, its highest level in 31 years, on Friday.

However, BoJ Governor Kazuo Ueda left the door open for further increases if economic activity and prices evolve as projected.

The US Federal Reserve (Fed) raised its benchmark interest rate for the first time in three years last week, prompting investors to bet on further hikes.

According to the CME FedWatch tool, markets now see a 53% chance of another 25-basis-point rate hike in October, up from 43% a week earlier.