The Bank of Japan tightened policy but the yen weakened, potentially undermining US Treasury Secretary Bessent's drive to support the currency after he helped lead a coordinated intervention earlier this summer—the first since 1998. Evercore ISI analyst Krishna Guha said the BOJ's tilt toward hawkishness fell short of market expectations; Bessent had flagged "information asymmetry," and the BOJ's reluctance to signal more aggressive action will pressure efforts to bolster the yen.

Bank of Japan raised its policy rate 25 bps to 1.25% on Friday, matching all economists surveyed. The move was the fastest pace of tightening in 36 years, and the gap since June’s hike was the shortest since 1990. Governor Ueda will explain the decision and the near-term rate path at a scheduled press conference. FX markets have shifted focus from whether to hike to how many hikes will follow; several institutions warn the yen could weaken after the decision unless the BOJ signals stronger tightening. A Reuters survey shows markets broadly expect rates to rise to 1.5% by end‑March 2027 and to 1.75% in Q2 2027.

VON DER LEYEN said she had just spoken by phone with Ukrainian President ZELENSKIY and that the European Commission will disburse EUR 3.3 bln to Ukraine tomorrow for missiles and drones.