Yen slumps after BOJ hikes rates as expected

Attention now turns to Governor Kazuo Ueda's press conference later, where he will explain the central bank's decision.

"The market will be looking for confirmation that further normalisation remains firmly on the table, while assessing whether the Bank sees any urgency to move again," said Chris Weston, head of research at Pepperstone Group in Melbourne.

The yen sank against its major peers in Asian trading on Friday after a widely expected rate hike from the Bank of Japan failed to arrest the currency's decline.

The Japanese currency JPY= weakened 0.6% to 156.91 yen per dollar, resuming its slide after snapping a three-day losing streak on Thursday even as the BOJ lifted interest rates to the highest level in more than three decades. The decision was not unanimous, with two board members voting to keep policy unchanged. Against the euro , the yen was 0.7% weaker at 180.21 yen.