Yen Slips Against Dollar Amid Central Bank Rate Hike Expectations

The Japanese yen has retreated in value against the US dollar despite a rate hike by the Bank of Japan. The currency's movements were limited due to the Japanese market holiday and concerns over official intervention to support it.

The yen had declined gradually yesterday but steadied at 157.33 against the dollar in early trading today, with global financial markets gaining from falling oil prices.

Cryptocurrencies have posted gains, driving Bitcoin's price above $87,000 for the first time in eight months. Markets are pricing in a 30% probability of a rate hike by the Bank of Japan to 1.5% in October and a 90% likelihood of a rate hike next week by the Reserve Bank of Australia.