The yen briefly reached the ¥158-per-dollar level in the foreign exchange market on the 18th, its weakest level in about two weeks. Views on the pace of future rate hikes receded after some policy board members opposed the Bank of Japan's rate hike decision.
The yen briefly reached the ¥158-per-dollar level in the foreign exchange market on the 18th. The move followed the Bank of Japan's decision at its Monetary Policy Meeting to raise its policy rate from 1.0% to 1.25%, taking the yen to its weakest level in about two weeks.
2 of the 9 policy board members opposed the rate hike in the Bank of Japan's decision, prompting market participants to say that expectations for an acceleration in the pace of rate hikes had receded. The yen was sold at times as a result.
Following the decision, some market participants said concern had increased over the direction of monetary policy going forward. Some also said that further yen depreciation could affect future monetary policy decisions.