Yen Declines After BOJ Hike, US Said to Hold Off on New China Tariffs

The Bank of Japan raised its policy rate by 25bps to 1.25%, but Governor Kazuo Ueda's mixed signals on further tightening prompted the yen to extend its decline against the U.S. dollar. The reaction indicates investors see uncertainty around the pace and extent of additional BOJ rate hikes, weighing on the currency despite the increase.