Japanese Yen Extends Losses After BOJ Decision -- Market Talk

1016 GMT - The Japanese yen extends its losses against the dollar after the Bank of Japan raised interest rates by 25 basis points to 1.25% but its signals about further tightening failed to meet lofty expectations. Governor Kazuo Ueda struck a careful balance in his press conference, HSBC economists say in a note. While Ueda indicated future rate rises, he had no specific pace in mind, they say. "We therefore maintain our baseline view that the BOJ will pause until the first quarter of 2027, when we expect a further 25 basis-point hike to lift the policy rate to 1.50%." The dollar rises 1.2% to a two-week high of 158.05 yen, according to LSEG. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

September 18, 2026 06:16 ET (10:16 GMT)