The Japanese yen weakened to around 156 per dollar on Friday, extending recent losses after the Bank of Japan delivered a widely expected interest rate hike. The central bank raised benchmark rates by 25 basis points to 0.75%, the highest level since 1995 as inflation stayed above target for some time now. Japan’s headline inflation eased slightly to 2.9% in November from 3% in October but stayed above the BOJ’s target for the 44th consecutive month, while core inflation held steady at 3%. Market attention is focused on Governor Kazuo Ueda’s post-meeting press conference for signals on whether the central bank will continue hiking rates next year. Meanwhile, Prime Minister Sanae Takaichi, a supporter of looser monetary policy, reportedly told a business lobby on Wednesday that Japan should prioritize proactive fiscal spending rather than excessive tightening to stimulate growth and boost tax revenues.