Yen Stays Under Pressure as BOJ Signals Caution

2026-05-27 02:39 By Jam Kaimo Samonte 1 min. read

The Japanese yen weakened beyond 159 per dollar on Wednesday, lingering near one-month lows after Bank of Japan Governor Kazuo Ueda warned about mounting inflation risks but stopped short of hinting at a possible interest rate increase at the central bank’s next policy meeting.

Ueda stressed the need to closely monitor the impact of rising oil prices on Japan’s underlying inflation trend, though he offered little guidance on how those pressures could shape next month’s policy decision.

Meanwhile, BOJ Deputy Governor Ryozo Himino reiterated that the central bank remains committed to additional rate hikes, while emphasizing that the timing and pace would depend on how the Middle East conflict influences Japan’s economy and inflation outlook.

Investors also continued to track developments in the Middle East, as signs of progress toward a US-Iran agreement were overshadowed by renewed hostilities that continued to cloud the broader outlook.



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Yen Stays Under Pressure as BOJ Signals Caution
The Japanese yen weakened beyond 159 per dollar on Wednesday, lingering near one-month lows after Bank of Japan Governor Kazuo Ueda warned about mounting inflation risks but stopped short of hinting at a possible interest rate increase at the central bank’s next policy meeting. Ueda stressed the need to closely monitor the impact of rising oil prices on Japan’s underlying inflation trend, though he offered little guidance on how those pressures could shape next month’s policy decision. Meanwhile, BOJ Deputy Governor Ryozo Himino reiterated that the central bank remains committed to additional rate hikes, while emphasizing that the timing and pace would depend on how the Middle East conflict influences Japan’s economy and inflation outlook. Investors also continued to track developments in the Middle East, as signs of progress toward a US-Iran agreement were overshadowed by renewed hostilities that continued to cloud the broader outlook.
2026-05-27
Yen Holds Steady Amid US-Iran Uncertainty
The Japanese yen steadied near 159 per dollar on Tuesday, moving sideways so far this week as fresh US military operations in southern Iran and ongoing peace negotiations kept investors cautious. The US military reportedly targeted missile launch sites and vessels suspected of attempting to deploy mines in southern Iran, with US Central Command saying the operations were aimed at protecting American troops in the region. Meanwhile, President Donald Trump said talks with Tehran were progressing well, though he warned that additional attacks could follow if negotiations broke down. On the domestic front, Bank of Japan Deputy Governor Ryozo Himino said the central bank remains committed to further interest-rate hikes, though the timing and pace would depend on how the Middle East conflict affects Japan’s economy and inflation outlook.
2026-05-26
Yen Strengthens as Oil and Dollar Weaken
The Japanese yen appreciated past 159 per dollar on Monday, rebounding from three-week lows as declining oil prices and a softer US dollar supported the currency amid signs that the US and Iran were moving closer to a deal that could reopen the Strait of Hormuz. A full reopening of the key shipping route would offer relief to major Asian economies heavily reliant on Middle Eastern oil imports. Meanwhile, data released last week showed Japan’s core inflation rate slowed to a four-year low in April, reducing pressure on the Bank of Japan to tighten monetary policy in the near term. Even so, the central bank could still consider raising rates as Japan’s economy continues to show resilience. Separately, traders remained cautious about the possibility of currency intervention, with the yen still trading near the 160-per-dollar level that reportedly prompted Tokyo’s intervention efforts in late April and early May.
2026-05-25