Yen Tumbles After BOJ Rate Hike: Uncertainty Looms

The yen declined against major currencies after Japan's central bank increased interest rates, yet remained unclear about future hikes. Despite efforts to control inflation and economic volatility, the yen continued to weaken as traders anticipated potential governmental intervention.

The yen experienced a sharp decline against the dollar and other major currencies on Friday following the Bank of Japan's decision to increase interest rates to a 30-year high. Despite this move, the bank offered little indication of future rate hike plans, contributing to the yen's weakening outlook.

Traders responded to the BOJ's policy rate hike from 0.5% to 0.75% by selling off the yen, leading to its significant drop. The currency witnessed further losses during BOJ Governor Kazuo Ueda's press conference, where he gave no clear timeline for continuing rate hikes, merely keeping the option open.

As concerns of excessive volatility emerged, Japanese Finance Minister Satsuki Katayama warned of potential government intervention to stabilize the market. Speculation persisted as traders evaluated the impact of the BOJ's strategies on the yen and the broader currency landscape.

(With inputs from agencies.)