The BOJ raised its short-term policy rate by 25 basis points to 1.0%, the highest level in 31 years

Most Asian currencies were little changed on Tuesday after an expected interest rate increase from the Bank of Japan.

The BOJ raised its short-term policy rate by 25 basis points to 1.0%, the highest level in 31 years, in a widely anticipated move aimed at containing inflation and continuing its gradual normalization of monetary policy.

The decision was approved by a 7-1 vote. Deputy Governor Shinichi Uchida to oversaw the meeting.

Markets were focused less on the hike itself and more on signals regarding the pace of future tightening.

The yen’s USD/JPY pair was little changed at 160.23 yen after the decision, with traders remaining cautious as the currency lingered near the psychologically important 160-per-dollar level despite expectations of higher Japanese rates.

The perception and interpretation of the Deputy Governor’s remarks may also matter and the Yen will also take its cue on how forcefully he communicates on the path of rates ahead, MUFG analysts said in a note.

Currency markets have largely looked through the Iran accord for now, with traders awaiting details on the implementation of the agreement and the reopening of the Strait of Hormuz.

While easing geopolitical tensions have supported risk sentiment, uncertainty surrounding the deal’s longer-term impact has kept broader foreign-exchange moves muted.

Currencies were largely subdued. The yuan’s onshore pair USD/CNY and the won’s USD/KRW traded flat.

The Indian rupee’s USD/INR pair edged down 0.3%, while the Singapore dollar’s USD/SGD was little changed.

The Australian dollar’s AUD/USD pair edged down 0.2% ahead of a Reserve Bank of Australia policy decision later in the day, where policymakers are expected to leave rates unchanged.