In the foreign exchange market on the 18th, the yen fell to the ¥158 range against the dollar at one point, while speculation grew that the Bank of Japan had conducted a rate check as expectations for an additional rate hike receded. The Nikkei 225 ended higher for a second consecutive session.
In the foreign exchange market on the 18th, the yen weakened against the dollar, briefly reaching the ¥158 range. The move came as views spread that expectations for a Bank of Japan rate hike would recede, prompting yen selling.
The yen subsequently rebounded at times, depending on market conditions. As of 5 p.m., the dollar was trading at ¥157.48–50 and the euro at ¥180.87–91. After the yen weakened again following the opening of the London market, it turned higher again in the New York market, fluctuating into the upper ¥156 range.
At its monetary policy meeting, the Bank of Japan decided to raise its policy rate from around 1.0% to around 1.25%. However, 2 of the 9 policy board members, Asada Toichiro (浅田統一郎) and Sato Ayano (佐藤綾野), opposed the rate hike, prompting market views that the pace of rate increases was uncertain.
In the Tokyo stock market, the Nikkei 225 ended its second consecutive session of gains at ¥65,018.95, up ¥882.70 from the previous day.