(Bloomberg) -- The yen fluctuated in choppy trading versus the dollar after the Bank of Japan raised interest rates for the first time since July.
The Japanese currency is moving between gains and losses, and was down 0.1% to 156.11 at 12:27 p.m. Overnight index swaps had already shown a high chance of a rate hike at the meeting.
The decision is good news for the beleaguered yen, which has been weighed down by wide interest-rate differentials between the US and Japan, with the Federal Reserve signaling a slowdown in monetary easing.
Japan's central bank came under fire for its communication when its July rate hike helped set off a historic plunge in the country's stocks and fueled global market turmoil. This time around, Governor Kazuo Ueda had guided market expectations by saying his board would discuss a possible move, and media reports pointed to a good chance of a hike.
The BOJ's rate hike is its third in less than a year, and takes the policy rate to its highest since 2008. A key focus for the market will now be whether Ueda will give any hints about the pace of future hikes at his press conference this afternoon.
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