The Bank of Japan raised its policy interest rate by 0.25 percentage points on September 18. This decision brings the benchmark rate to 1.25%. Borrowing costs in Japan have reached their highest level since 1995.
Platinum prices rallied alongside other precious and industrial metals following the announcement. A weakening U.S. dollar served as the primary driver for the price increase. A softer dollar reduces the cost of platinum for international buyers using other currencies.
Investors interpreted the central bank's forward guidance as dovish. The bank signaled a gradual pace for future monetary tightening. This outlook improved risk appetite in Asian markets and bolstered demand for industrial metals.