Business
Yen Falls After Bank of Japan Raises Key Rate to 30-Year High
The Bank of Japan raised its benchmark interest rate to a 30-year high, sending the Japanese yen sharply lower.
The dollar strengthened more than 1% against the yen following the BOJ’s move, a reaction at odds with Tokyo and Washington’s ambition for a stronger yen. A dollar bought around 157.8 yen in Asia afternoon trading, compared with the month’s low of 153.54 Sept. 11.
Investors seemingly took issue with dovish signals that sowed doubt how quickly the BOJ will follow through with more rate increases. Two members of the policy board didn’t want to raise rates at all. “They may increasingly act as a brake on further tightening,” ING’s Frantisek Taborsky said.
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