BoJ Hikes to a 31-Year High of 1.25%, Then Two Dissents Knock the Yen to a Two-Week Low

The Economic Times, citing Reuters on 18 September 2026, said the yen sank to a two-week low against the dollar after the Bank of Japan raised rates and two policymakers dissented. The board lifted the benchmark by 25 basis points to 1.25%, the highest since April 1995.

This is a Bank of Japan policy rate decision on a 7-2 vote. It is not a currency intervention, and it is not the same move as the Federal Reserve hike earlier in the week. Dissents came from policymakers Asada and Sato.

The dollar rose 1.2% against the yen to 157.84, a two-week high for the dollar, after wavering during Governor Kazuo Ueda's press conference. Reuters said it was set for its biggest daily gain versus the yen since December and the largest weekly rally since September 2024. Business Standard printed a weaker dollar print near 156.95 while markets still waited on Ueda. Those two prints are not the same snapshot.

Finance Minister Satsuki Katayama said Tokyo will not hesitate to act after a prior US-Japan joint move. That is a warning, not an intervention on Friday. Ueda's press conference did not deliver the hawkish forward path markets wanted.

Related same-week rate tape includes the Fed's first hike in three years, the pre-meeting Warsh setup, and Trump's 1% demand after that hike.

If you hold yen or JGBs this week, price off the 157.84 dollar print and a 7-2 board, and treat another hike as unconfirmed until Ueda names a path.