Yen Heads for Steep Weekly Decline

2026-05-15 02:38 By Jam Kaimo Samonte 1 min. read

The Japanese yen weakened to around 158.5 per dollar on Friday and was set to post a weekly loss of more than 1%, pressured by broad dollar strength as accelerating US inflation linked to the Iran war reinforced expectations for a Federal Reserve rate hike later this year.

Persistently high oil prices driven by the prolonged Middle East conflict also weighed on the yen, given Japan’s heavy dependence on energy imports from the region.

The currency has now surrendered roughly half of the gains sparked by multiple rounds of government intervention that began on April 30, fueling speculation that Tokyo could step into the market again to support the yen.

US Treasury Secretary Scott Bessent also voiced support for Japan’s recent measures aimed at stabilizing the currency.

Meanwhile, Bank of Japan board member Kazuyuki Masu argued that interest rates should be raised as soon as possible, citing increasingly persistent inflation risks stemming from the Iran war.



News Stream
Yen Heads for Steep Weekly Decline
The Japanese yen weakened to around 158.5 per dollar on Friday and was set to post a weekly loss of more than 1%, pressured by broad dollar strength as accelerating US inflation linked to the Iran war reinforced expectations for a Federal Reserve rate hike later this year. Persistently high oil prices driven by the prolonged Middle East conflict also weighed on the yen, given Japan’s heavy dependence on energy imports from the region. The currency has now surrendered roughly half of the gains sparked by multiple rounds of government intervention that began on April 30, fueling speculation that Tokyo could step into the market again to support the yen. US Treasury Secretary Scott Bessent also voiced support for Japan’s recent measures aimed at stabilizing the currency. Meanwhile, Bank of Japan board member Kazuyuki Masu argued that interest rates should be raised as soon as possible, citing increasingly persistent inflation risks stemming from the Iran war.
2026-05-15
Yen Extends Losses for Fourth Session
The Japanese yen weakened toward 158 per dollar on Thursday, falling for the fourth straight session as the dollar gained traction on accelerating US inflation, which reinforced expectations that the Federal Reserve could maintain higher interest rates or even deliver an additional hike. The absence of decisive intervention from Japanese authorities also weighed on sentiment, although traders remain alert to potential action after US Treasury Secretary Scott Bessent expressed support for Tokyo’s recent efforts to stabilize the currency. On the policy front, the Summary of Opinions from the Bank of Japan’s April meeting suggested that policymakers debated the possibility of additional interest rate increases as early as the next meeting, with higher oil prices further complicating the inflation outlook. Separately, the OECD projected that the Bank of Japan’s policy rate could rise to 2% by the end of 2027.
2026-05-14
Yen Extends Losses as Dollar Strengthens
The Japanese yen weakened toward 158 per dollar on Wednesday, falling for a third straight session as the dollar gained on hotter-than-expected US inflation data that reinforced expectations for tighter Federal Reserve policy. In Japan, the Summary of Opinions from the Bank of Japan’s April meeting indicated policymakers discussed the possibility of additional rate hikes as soon as the next meeting, with rising oil prices adding to inflation concerns. The OECD also projected that the BOJ’s policy rate could reach 2% by the end of 2027. Meanwhile, currency traders stayed alert to potential intervention after US Treasury Secretary Scott Bessent said both the US and Japan view excessive currency volatility as undesirable, remarks interpreted as supportive of Tokyo’s recent efforts to stabilize the yen.
2026-05-13