The Japanese yen weakened substantially against its peers on Tuesday and Wednesday, as an interest rate hike by the Bank of Japan was largely overshadowed by the central bank reiterating its dovish outlook for the near-term. The yen weakened sharply after Ueda’s comments, with the USDJPY pair surging to its highest level since mid-November, at over 151 to the dollar. The Japanese currency fared even worse against the euro, with the EURJPY pair surging to levels last seen during the 2008 global financial crisis. EURJPY trended around 164.31. Losses in the yen were also exacerbated by anticipation of a Federal Reserve meeting this week, with traders pivoting into the dollar on fears that the central bank will strike a more hawkish chord than expected. Analysts said that the Fed and U.S. interest rates remained the biggest drivers of the yen.