Dollar Jumps Around 1 Yen to Above 157 Yen, Nikkei Index Climbs After BOJ Rate Hike
The dollar rose to a two-week high and the Nikkei gained as investors bet the BOJ will keep raising rates gradually.
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Dollar jumps around 1 yen to above 157 yen, Nikkei index climbs after BOJ rate hike
The U.S. dollar jumped above 157 yen on Friday after two of the Bank of Japan's nine policy board members voted against an interest rate hike, while the Nikkei stock index extended gains following the policy decision.
Now the market is looking at the next rise. Swaps overnight assigns approximately 85% probability to another BOJ increase in December. Japan’s entry raises the rate to 1.25%, the highest level in decades, but the yen falls: what the market is seeing was first published on Ultima Cable - World News.
The Bank of Japan raised its benchmark short-term interest rate by 0.25 percentage points to 1.25 percent, MTI reports. The interest rate level, not seen since April 1995, met market expectations, but the yen weakened after the decision.
The Bank of Japan (BOJ) raised its key interest rate by 25 basis points to 1.25% on Friday, bringing the cost of borrowing to its highest level since 1995. The decision came just three months after the June move to 1.0%, marking a marked acceleration in the monetary tightening cycle. The market reacted, paradoxically, with a weakening yen and a rally on the Tokyo stock market.
Interest rate hikes failed to save yen, Asian stocks rise. Asian stock markets moved higher on Friday, supported by a Wall Street rally and falling oil prices. The Japanese yen weakened after the central bank's interest rate hike, which came amid disagreements in the board. Asia, Stock exchange.
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