Japanese Yen futures slipped to a 10-session low before trimming losses as markets digested rate hikes from both the Bank of Japan and the U.S. Federal Reserve. While the BOJ raised rates a quarter point to 1.25%, the highest level since 1995, a divided vote and softer core inflation data of 1.7% offered a less hawkish outlook than expected. Meanwhile, the Fed's unanimous decision to raise rates maintained the existing rate differential between the two countries. The sustained gap in rates preserves the appeal of the Yen carry trade, keeping pressure on the Japanese currency as investors favor dollar-denominated assets.
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