Japanese Yen Rises as Oil Prices Decline

2026-08-26 02:51 By Jam Kaimo Samonte 1 min. read

The Japanese yen appreciated to around 159 per dollar on Wednesday, snapping a two-day decline as oil prices fell further on hopes of renewed diplomatic efforts in the Middle East, easing concerns over higher inflation in the near term.

The yen also benefited from dollar weakness as markets prepared for a key US inflation reading and Federal Reserve Chair Kevin Warsh’s speech later this week.

Domestically, former Bank of Japan board member Seiji Adachi said the central bank will likely raise rates next month and again as early as January, warning that holding rates could reignite a yen selloff and accelerate import-driven inflation.

Markets are currently pricing in around an 80% probability that the BOJ will raise rates by 25 basis points to 1.25% next month, up sharply from about 23% before the central bank’s July meeting.

Meanwhile, BOJ Governor Kazuo Ueda will not attend the Fed’s annual Jackson Hole symposium this week due to a scheduling conflict.



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Japanese Yen Rises as Oil Prices Decline
The Japanese yen appreciated to around 159 per dollar on Wednesday, snapping a two-day decline as oil prices fell further on hopes of renewed diplomatic efforts in the Middle East, easing concerns over higher inflation in the near term. The yen also benefited from dollar weakness as markets prepared for a key US inflation reading and Federal Reserve Chair Kevin Warsh’s speech later this week. Domestically, former Bank of Japan board member Seiji Adachi said the central bank will likely raise rates next month and again as early as January, warning that holding rates could reignite a yen selloff and accelerate import-driven inflation. Markets are currently pricing in around an 80% probability that the BOJ will raise rates by 25 basis points to 1.25% next month, up sharply from about 23% before the central bank’s July meeting. Meanwhile, BOJ Governor Kazuo Ueda will not attend the Fed’s annual Jackson Hole symposium this week due to a scheduling conflict.
2026-08-26
Japanese Yen Edges Lower as Dollar Gains
The Japanese yen weakened past 159 per dollar on Tuesday, extending its recent decline as the dollar gained modestly on safe-haven demand, with a US plan to cut Iran off from the global financial system highlighting the greenback’s central role in international trade. However, renewed concerns over a potential US debt crisis limited the dollar’s gains amid skepticism about the effectiveness of the US Treasury Department’s expanded debt buyback plan. Domestically, former Bank of Japan board member Seiji Adachi said the central bank will likely raise rates next month and again as early as January, warning that holding rates could reignite a yen selloff and accelerate import-driven inflation. Markets are currently pricing in around an 80% probability that the BOJ will raise rates by 25 basis points to 1.25% next month, up sharply from about 23% before the central bank’s July meeting.
2026-08-25
Japanese Yen Stays Range-Bound
The Japanese yen traded little changed around 158.9 per dollar on Monday, as stronger expectations for an early Bank of Japan rate hike continued to underpin the currency. Markets are now pricing an around 82% probability of a September rate increase, up sharply from about 23% before the BOJ’s July meeting, with the widely expected move taking the policy rate to 1.25% from 1%. Investors are awaiting Deputy Governor Ryozo Himino’s speech on Thursday for further clues on the timing and pace of policy tightening, while recent acceleration in Japanese inflation has reinforced expectations for further normalization. Additionally, broad US dollar weakness amid concerns over the Treasury’s expanded long-term bond buybacks added to demand for the yen.
2026-08-24