USD/JPY Hovers Near 162 as BOJ Warns on Rates, BOK Hikes to 2.75%

USD/JPY remained elevated near the 162 level during the Asia-Pacific session, prompting Japan's finance minister to reiterate FX warnings as yen weakness persists. A senior BOJ official added urgency by cautioning that delaying rate adjustments could lead to an economic downturn in the future, signaling a potentially more hawkish stance ahead. Meanwhile, the Bank of Korea delivered a unanimous 25 basis point rate hike to 2.75%, citing persistent inflation concerns, which supported the Korean won. Geopolitical developments intensified as the US completed a new wave of strikes on Iran, including hits on Bandar Abbas, maintaining risk-off undertones across Asian markets. The US also imposed 25% tariffs on select Brazilian goods while exempting beef and coffee. Asian chip stocks were slammed, with the Nikkei and Kospi both sliding sharply. South Korean regulators announced plans to curb single-stock leveraged ETFs as sidecars triggered on both the Kospi and Kosdaq. Traders should monitor BOJ policy signals closely, as any concrete move toward rate normalization could trigger a significant yen recovery.