Yen Weakens After First Face-Off Between Japan PM, BOJ Gov

TOKYO—The first face-to-face meeting between Japan’s prime minister and the head of its central bank has cooled expectations that an interest-rate hike is coming soon, sending the yen to a nine-month low.

Markets had been closely watching the interaction between Prime Minister Sanae Takaichi, a proponent of looser monetary policy, and Bank of Japan Gov. Kazuo Ueda, who has been steadfast in saying that the bank is ready to hike rates, but only when conditions are right.