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fxJun 16, 2026, 3:30 AM

BoJ Hikes Rate to 1% as Expected; Yen Gives Up Gains

The Bank of Japan raised its policy rate by 25 basis points to 1%, matching market expectations. The yen initially strengthened but later surrendered those gains against major peers.

USDJPY

The Bank of Japan (BoJ) delivered a 25-basis-point rate hike, bringing the policy rate to 1% – a move widely anticipated by markets. The decision was announced during the Asian session.

The Japanese yen initially rallied on the news, reflecting the first rate increase in this cycle that brings the rate to its highest level since 2008. However, the currency quickly reversed course, giving back most of its early gains against the US dollar, euro, and other major counterparts.

Traders are now focusing on Governor Kazuo Ueda's press conference for further guidance on the pace of future tightening. The BoJ's cautious stance and the lack of hawkish surprises appear to have capped yen upside.

Source: FXStreet Forex News