BOJ reportedly checks FX rates after yen hits 158 per dollar

The yen hit 158 against the dollar after the Bank of Japan raised its policy rate, then rebounded as traders reassessed intervention risk. The BOJ reportedly conducted an FX rate check, a direct signal that officials were responding to the selloff.

The rate hike took the policy rate to 1.25%, the highest since 1995, but yen buyers were still disappointed because Japanese rates and long-term yields remain below those in other major economies. A further report said Japan had conducted the check earlier that day.