Yen Hits Record Low After BoJ Hike Fails to Quell Inflation Concerns

The Japanese yen plummeted to near 158 against the US dollar on Friday despite a key interest rate hike by the Bank of Japan (BoJ) aimed at combating inflation.

The BoJ raised its target interest rate by 0.25 percentage points to around 1.25%, marking borrowing costs at a 31-year high.

However, the move was met with skepticism as a 7-2 split vote among policy board members raised doubts over the central bank's willingness for further tightening, leading to the yen's 1.3% drop.