Yen Falls to Weakest Level Since September After BOJ Rate Hike
The Japanese yen weakened significantly against its major peers in Asian trading on Friday after the Bank of Japan (BOJ) raised interest rates as expected, but failed to halt its decline. The yen fell as much as 0.8% to 157.145 yen per dollar, marking its weakest level since September 3.
The BOJ's decision was not unanimous, with two board members voting against the rate hike. This lack of unity raised eyebrows in the market, according to Ray Attrill, head of FX strategy at National Australia Bank in Sydney.
Despite the rate hike, Japan's core inflation held steady near the central bank's target of 2% in August, highlighting mounting price pressures. The market will be looking for confirmation that further normalization remains on the table during Governor Kazuo Ueda's press conference.