Dollar jumps 1.2% against yen after BOJ dissent clouds rate-hike outlook

  • Bank of Japan policymakers dissented as the central bank raised interest rates to 1.25%.
  • The dollar gained 1.2% against the yen, reaching 157.897 yen.
  • Finance Minister Satsuki Katayama warned Tokyo would pursue further coordinated currency action if necessary.

The U.S. dollar rose 1.2% against the yen to a two-week high of 157.897 after two Bank of Japan policymakers dissented from the decision to raise rates to 1.25%, the highest level in 31 years. Traders viewed the lack of explicitly hawkish guidance as weakening the case for additional BOJ hikes, while the Federal Reserve’s rate increase and signal of further tightening supported the dollar. The dollar index gained 0.25% to 100.48 and was up 1.4% for the week. Markets priced a roughly 55% chance of a quarter-point Fed increase at next month’s meeting, compared with 27% a week earlier. The yen remained vulnerable to intervention after Finance Minister Satsuki Katayama said Tokyo would not hesitate to take further coordinated action. Oil prices fell on signs of easing supply pressures in Saudi Arabia, while the euro and pound slipped. Bitcoin climbed 4% above $80,000, extending its rebound from Tuesday’s cryptocurrency-legislation setback.

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Dollar jumps 1.2% against yen after BOJ dissent clouds rate-hike outlook - CoinPost Terminal