Yen Hits Two-Week Low as Bank of Japan Raises Interest Rate
The Japanese yen declined against a basket of major and minor currencies in Asian trading on Friday, reaching its lowest point in two weeks. This comes after the Bank of Japan's monetary policy meeting, which raised interest rates to their highest level since 1995.
Despite expectations, the Bank of Japan justified the rate hike by citing inflation risks and the possibility that prices could overshoot the central bank's target over the medium term. The decision was approved by a 7-2 majority.
The yen's decline against the US dollar is its biggest weekly loss since December 2024, with the dollar rising 0.75% to ¥157.14, its highest level since September 3. Market expectations for an October interest rate hike have fallen below 25%, and investors are eagerly awaiting Bank of Japan Governor Kazuo Ueda's remarks later today.