Yen Holds Decline on Energy Concerns

2026-03-03 02:01 By Jam Kaimo Samonte 1 min. read

The Japanese yen traded around 157.4 per dollar on Tuesday, following a nearly 1% drop in the previous session, pressured by rising energy costs amid the escalating Middle East conflict given Japan’s heavy reliance on energy imports.

Finance Minister Satsuki Katayama noted that currency market intervention remains an option to support the yen, saying authorities are monitoring the decline “with a strong sense of urgency” and are in close coordination with the US.

Japan faces the dual challenge of sluggish growth and persistent inflation, complicating the Bank of Japan’s policy path, though Deputy Governor Ryozo Himino affirmed that the central bank will continue raising interest rates without specifying a timeline.

Investors are now awaiting remarks from Governor Kazuo Ueda later in the day for further guidance.

Last week, the government nominated two reflationist academics to the BOJ policy board, while PM Sanae Takaichi reportedly expressed concerns over additional rate hikes.



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