Yen Slips Below 157 as BOJ Raises Rates, Reaffirms Tightening Path

The Japanese yen continued its volatile performance on Friday, hitting two-week lows after the Bank of Japan raised interest rates by 25 basis points to 1.25%, the highest since April 1995.

This move was widely telegraphed, but it still sent shockwaves through the market as the currency weakened past 157 per dollar.

However, Governor Kazuo Ueda's post-meeting press conference provided some clarity on the central bank's intentions. He reaffirmed that the BOJ remains committed to raising rates and adjusting the extent of monetary accommodation based on changes in economic activity, prices, and financial conditions.