BOJ Raises Rates as Yen Falls Amid Market Expectations

The yen fell slightly after the Bank of Japan raised its policy rate to 0.75% from 0.5% in a widely expected move. Investors await further details from the central bank's governor to see if it can continue hiking rates next year. The euro extended gains to 182.92 yen, while sterling rose 0.3% to 208.71 yen. The dollar briefly weakened after a sharp fall in US inflation, but the move soon retraced.