Yen Falls Against Dollar as Traders Question BOJ's Rate-Hike Pace

The yen has been on a decline against the dollar for three consecutive days, with investors questioning whether the Bank of Japan will raise interest rates quickly enough to keep pace with global peers.

Last week, the BOJ hiked its benchmark short-term rate, but the Japanese currency has retreated from a seven-month high it reached in September.

Two policymakers dissented from the decision, pushing for a more cautious approach, which some see as a warning sign that additional hikes may be harder to implement.

Nominal strategist Naomi Fink at Amova Asset Management said 'Whether the central bank quickens its pace remains contingent on how events unfold. Questions of where neutral and terminal policy rates sit are still open for debate.'