Japanese Yen Hits 4-week Low

The Japanese yen weakened to around 159.5 per dollar on Thursday, marking its lowest level in four weeks and moving closer to the key 160 threshold that reportedly prompted market intervention by Tokyo last month. Investors are now awaiting official finance ministry data due Friday that could confirm government action to stabilize the currency, with some analysts estimating authorities may have spent as much as 10 trillion yen in support operations. On the policy front, Bank of Japan Governor Kazuo Ueda warned of rising inflation risks linked to higher oil prices but stopped short of signaling whether the central bank could raise interest rates at its next meeting. Meanwhile, BOJ Deputy Governor Ryozo Himino reaffirmed the central bank’s commitment to further rate hikes, while noting that the timing and pace would depend on how the Middle East conflict affects Japan’s economy and inflation outlook.

The Japanese Yen touched 159.59 against the USD, the lowest since April 2026. Over the past 4 weeks, US Dollar Japanese Yen lost 0.03%, and in the last 12 months, it increased 10.17%.

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.