Yen Gains on Hawkish BOJ Bets

2026-03-18 06:28 By Jam Kaimo Samonte 1 min. read

The Japanese yen strengthened to around 158.5 per dollar on Wednesday, rising for a third consecutive session on expectations that the Bank of Japan could signal a hawkish bias at its policy meeting this week, as a weak yen and elevated oil prices from the Iran war heightened inflation risks.

Still, the central bank is widely expected to keep interest rates unchanged while assessing the impact of the Middle East conflict on the domestic economy.

Meanwhile, Prime Minister Sanae Takaichi is set to meet US President Donald Trump this week, navigating a diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz before retracting the request.

Japan’s heavy reliance on Middle East oil and US security support places Tokyo in a delicate position.

Data also showed Japanese exports rose 4.2% in February year-on-year, exceeding expectations of 1.6% but slowing sharply from January’s 16.8% surge.



News Stream
Yen Gains on Hawkish BOJ Bets
The Japanese yen strengthened to around 158.5 per dollar on Wednesday, rising for a third consecutive session on expectations that the Bank of Japan could signal a hawkish bias at its policy meeting this week, as a weak yen and elevated oil prices from the Iran war heightened inflation risks. Still, the central bank is widely expected to keep interest rates unchanged while assessing the impact of the Middle East conflict on the domestic economy. Meanwhile, Prime Minister Sanae Takaichi is set to meet US President Donald Trump this week, navigating a diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz before retracting the request. Japan’s heavy reliance on Middle East oil and US security support places Tokyo in a delicate position. Data also showed Japanese exports rose 4.2% in February year-on-year, exceeding expectations of 1.6% but slowing sharply from January’s 16.8% surge.
2026-03-18
Yen Holds Steady Ahead of Takaichi-Trump Meet
The Japanese yen traded around 159 per dollar on Wednesday, holding gains from earlier in the week as investors looked ahead to the meeting between Prime Minister Sanae Takaichi and US President Donald Trump this week. Takaichi faces a diplomatic balancing act after Trump initially urged Japan to deploy warships to the Strait of Hormuz before retracting the request. She is also under pressure to protect Japan’s interests, given its reliance on Middle East oil and historical ties with Iran. The yen has weakened amid the Iran war and soaring oil prices, which have pressured Japan’s oil-importing economy. Verbal interventions from Tokyo helped limit further declines, keeping the currency steady. Meanwhile, Japanese exports rose 4.2% in February year-on-year, surpassing expectations of 1.6% but slowing sharply from January’s 16.8% surge.
2026-03-18
Yen Slips Despite Verbal Interventions
The Japanese yen fell toward 159.5 per dollar on Tuesday, giving back gains from the previous session as verbal interventions from authorities have so far failed to halt the currency’s decline. Finance Minister Satsuki Katayama said recent currency moves do not reflect fundamentals, reiterating warnings that authorities could take action to defend the yen. She added that they are fully prepared to respond at any time given the impact of exchange rates and rising oil prices on everyday life. Meanwhile, Bank of Japan Governor Kazuo Ueda said underlying inflation is gradually moving toward the 2% target. The central bank is widely expected to keep interest rates unchanged this week amid heightened uncertainty over the Iran war’s impact on the domestic economy. Japan has so far rejected US President Donald Trump’s call to send warships to escort oil tankers through the Strait of Hormuz.
2026-03-17