BoJ Split Vote Fuels Yen Rally, USD/JPY Drops to 158.95 on Hike Odds

The Bank of Japan's 6-3 split decision holding rates at 0.75% but with three members dissenting for a hike has strengthened the yen, driving US Dollar vs Japanese Yen down 0.5% to 158.95 as markets price a 74% chance of a June 16 increase. Initial reports highlighted the hawkish tone and higher core inflation forecast to 2.8%, alongside cut growth projections to 0.5% from 1%, linked to Strait of Hormuz energy issues. Despite yen carry trade unwind fears pressuring bitcoin (BTC/JPY down 0.6% to ¥12.28m), Japanese buying of $14bn in US Treasuries signals ongoing flows.