Dollar Hits 10-Month High Against Yen After Fed Decision

The yen fell to a fresh 10-month low against the dollar Thursday after the [Federal Reserve](https://www.wsj.com/economy/central-banking/federal-reserve-powell-interest-rates-ba600bf0)’s rate projections suggested that the interest-rate gap between the U.S. and Japan would widen further. The Fed on Wednesday decided to leave rates steady but signaled the possibility of another rate increase this year. Since the Bank of Japan [lifted its cap](https://ift.tt/hqMjE0m) on the yield on 10-year Japanese government bonds to 1% from 0.5% in July, expectations have grown for a BOJ move to raise short-term interest rates, following in the wake of the Fed and the European Central Bank.