The yen fell against the dollar in the New York market on the 16th, as the Federal Reserve's 0.25% rate hike focused attention on a widening Japan-US interest rate differential. After falling to the low ¥156 range, dollar-yen stood at around ¥156.27–¥156.37 as of 5 p.m.
In the New York foreign exchange market on the 16th, the yen fell against the dollar, weakening to ¥156.42 per dollar at one point. The Federal Reserve raised its key policy rate by 0.25% and signaled further rate hikes this year, once again focusing attention on a widening Japan-US interest rate differential.
Ahead of the BOJ meeting, some market participants expect dollar-yen to rise toward around ¥158.40, near the 200-day moving average. Experts say dollar-yen may have room for a correction following the Fed's hawkish signal.
Many expect the yen's direction to depend on the BOJ's response. A hawkish stance could support yen buying, although some say the market has already priced in strong expectations for a hawkish outcome.