Yen strengthens as BOJ delivers expected rate increase amid Trump uncertainty

Japanese currency's trajectory tied to U.S. tariff policy, currency analysts say

Leading up to the BOJ meeting, top policymakers’ hawkish tone and higher wages had raised investor expectations of a rate hike. (Photo by Akira Kodaka)

LISA KIM and RYOHTAROH SATOH

January 24, 2025 12:48 JST

Updated on January 24, 2025 19:23 JST

TOKYO -- The Japanese yen rose against the U.S. dollar on Friday after the central bank lifted interest rates as expected at its two-day meeting and maintained a balanced tone on its future decisions, as U.S. trade partners await clarity on policy under a new president.

The Bank of Japan "is trying to be relatively cautious and market reaction is hawkish at the margin," said Benjamin Bennett, head of investment strategy for Asia at Legal & General Investment Management in Hong Kong.