Yen Volatility Spikes as BOJ Decision Sparks Investor Concern

The yen has become increasingly vulnerable to sharp price fluctuations in the wake of the Bank of Japan's latest interest rate decision. The central bank raised borrowing costs, but some board members dissented against this move, citing concerns about the pace of future rate hikes.

As a result, the Japanese currency slumped by as much as 1.3% versus the dollar on Friday, closing at 156.88 and posting a decline of over 2% for the week so far.

Trading will resume on Monday after Japan's three-day holiday, but liquidity is expected to remain low due to the absence of many market participants.