Yen Firms on Intervention Worries
2026-09-01 02:03
By
Jam Kaimo Samonte
1 min. read
The Japanese yen steadied around 159.8 per dollar on Tuesday, attempting to rebound from the key psychological level of 160 per dollar, which has heightened concerns over possible follow-up intervention by authorities.
The yen has retraced more than half of its gains following the joint Japan-US currency market intervention in late July, with persistent structural weakness continuing to weigh on the currency.
The yen remained under pressure from wide interest rate differentials, growing fiscal concerns in Japan and elevated oil prices linked to the conflict in the Middle East.
Investors also continued to assess the outlook for Bank of Japan monetary policy following reports that US Treasury Secretary Scott Bessent urged Prime Minister Satsuki Katayama and BOJ Governor Kazuo Ueda to raise interest rates.
Expectations are building for a September rate increase from the Japanese central bank amid concerns over persistent yen weakness and import-driven inflation.