The Bank of Japan raised its policy interest rate by 25 basis points to 1.25%, marking the highest level since 1995, according to FX Street. This move led to a weakening of the Japanese Yen across several major currencies during Asian trading hours on Friday.
Following the rate hike, the AUD/JPY pair climbed to around 112.05, while EUR/JPY traded near 180.20. GBP/JPY surged beyond 209.50, reaching a nearly two-week high, and USD/JPY jumped close to 156.95, FX Street reported. The rate increase signals a significant shift in BoJ monetary policy amid persistent inflationary pressures.
In broader market context, Japan’s central bank decision contrasts with other global monetary authorities and impacts FX and crypto markets, where Bitcoin recently approached $77,000. This rate adjustment underscores ongoing efforts to balance economic growth with inflation control in a challenging environment for Japanese investors.