Key facts
- The yen fell to 157 against the dollar on Friday.
- The Bank of Japan raised its policy rate by 0.25% to 1.25%.
- Japan's consumer inflation in August was lower than expected.
The yen weakened against the dollar on Friday, trading at 157, as expectations for aggressive monetary tightening by the Bank of Japan diminished. The central bank raised its policy rate by a quarter point to 1.25% around midday. This move came as Japan's consumer inflation data for August was reported to be lower than anticipated, further dampening hopes for more aggressive rate hikes.