Dollar Jumps Around 1 Yen to Above 157 Yen, Nikkei Index Climbs After BOJ Rate Hike
The move was widely expected, but two policy board members dissented and the yen later weakened as traders awaited clearer guidance.
- The Bank of Japan raised its policy interest rate to 1.25 percent from 1.0 percent on Friday, marking a 31-year high; the yen weakened to 158 per US dollar while the Nikkei Stock Average gained 1.38 percent.
- Board members Toichiro Asada and Ayano Sato dissented in a 7-2 vote, prompting Mizuho Securities Co. chief currency strategist Masafumi Yamamoto to characterize the outcome as dovish. "There were no arguments about a larger rate hike," Yamamoto said.
- The yen slumped further after the US Federal Reserve raised benchmark interest rates to a range of 3.75 to 4 percent earlier this week, widening the interest-rate gap between the two nations and pressuring the Japanese currency.
- Josh Gilbert, lead analyst at eToro, said the split vote raised doubts over future tightening speed, noting a sustained yen recovery requires markets to price in faster rate increases or narrower interest-rate disadvantages.
- Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., stated steady rate hikes could stabilize prices and interest rates, prompting business investment. OCBC Bank expects the Singdollar to remain resilient against the yen in the near term.
43 Articles
43 Articles
(Tokyo=Yonhap News) Correspondent Lee Do-yeon = As the value of the yen fell in the foreign exchange market immediately after the Bank of Japan raised its base interest rate, the Bank of Japan 'rate check' (rate chec...
Yen slumps to two-week low after BOJ rate hike underwhelms
The Japanese yen faced a sharp decline against the dollar in the aftermath of the Bank of Japan's recent interest rate hike. This decision, which did not sit well with two dissenting policymakers, has sparked skepticism about forthcoming monetary policy adjustments. On a different note, easing oil prices reflected diminished supply concerns in Saudi Arabia, with overall currency markets exhibiting relative steadiness as traders evaluated global …
The Takaichi Fallout: Japan's rate hike can't fix what politics broke
On Friday, the Bank of Japan delivered a long-anticipated yet highly reluctant interest rate hike, pushing its policy rate to 1.25%, the highest level in 31 years, in a difficult move aimed at countering the persistent downward pressure on the yen and stabilizing the country's exchange rate.
Coverage Details
Bias Distribution
- 62% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
