Global Currency Movements Stir Uncertainty

The yen depreciated after the BOJ's rate hike, while the euro and sterling experienced minor increases against it. BOJ Governor Ueda's upcoming conference is crucial for future rate guidance. Concurrently, global currencies reacted to policy decisions in Europe, the UK, and other regions with mixed outcomes.

The yen slightly weakened on Friday after the Bank of Japan's anticipated rate hike, leaving markets eager for insights from Governor Kazuo Ueda later in the day. Investors are keen to understand if the central bank plans further rate increases next year, as the yen fell 0.25% to 155.94 per dollar.

The euro and sterling saw modest increases, each rising 0.2% against the yen. Market conversations speculate on the BOJ's future moves, with consensus pointing to a potential end target rate of 1% to 1.25%. Real rates remain significantly low, with the BOJ set to tighten if economic conditions warrant.

In contrast, European markets felt the impact of the ECB's decision to keep rates on hold, with the euro remaining stable alongside reactions to UK monetary policies and broader geopolitical financial decisions. Cryptocurrencies, meanwhile, experienced a positive bounce.

(With inputs from agencies.)