Yen Steadies as Traders Weigh BOJ Outlook

2026-08-27 02:00 By Jam Kaimo Samonte 1 min. read

The Japanese yen steadied around 159.2 per dollar on Thursday, remaining within a narrow trading range as investors continued to assess the outlook for Bank of Japan monetary policy.

Markets are currently pricing in around an 87% chance of a 25 basis point BOJ rate hike in September to 1.25%, up sharply from about 23% before the central bank’s July meeting.

Earlier this week, former BOJ board member Seiji Adachi said the central bank will likely raise rates next month and again as early as January, warning that keeping rates unchanged could trigger another yen selloff and accelerate import-driven inflation.

Meanwhile, BOJ Deputy Governor Ryozo Himino said the central bank remains vigilant to inflation risks and will discuss the need for further policy tightening.

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



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