Japanese Yen Weakens to 1-Month Low

2026-09-02 02:50 By Jam Kaimo Samonte 1 min. read

The Japanese yen depreciated past 160 per dollar on Wednesday, hitting its weakest level in a month and retracing about two-thirds of the gains made when Tokyo and Washington jointly intervened in currency markets about a month ago to support the yen.

Markets remain alert to the possibility of further intervention by authorities given the negative impact of a weak yen on domestic inflation and the broader economy.

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.

US Treasury Secretary Scott Bessent also met with Finance Minister Satsuki Katayama this week, where they agreed to continue coordinating efforts to achieve “orderly” yen moves.

Meanwhile, Bank of Japan Governor Kazuo Ueda said policymakers need to pay greater attention to upside price risks when conducting monetary policy, signaling that an interest rate hike is likely later this month.



News Stream
Japanese Yen Weakens to 1-Month Low
The Japanese yen depreciated past 160 per dollar on Wednesday, hitting its weakest level in a month and retracing about two-thirds of the gains made when Tokyo and Washington jointly intervened in currency markets about a month ago to support the yen. Markets remain alert to the possibility of further intervention by authorities given the negative impact of a weak yen on domestic inflation and the broader economy. 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. US Treasury Secretary Scott Bessent also met with Finance Minister Satsuki Katayama this week, where they agreed to continue coordinating efforts to achieve “orderly” yen moves. Meanwhile, Bank of Japan Governor Kazuo Ueda said policymakers need to pay greater attention to upside price risks when conducting monetary policy, signaling that an interest rate hike is likely later this month.
2026-09-02
Yen Remains on Intervention Watch
The Japanese yen traded around 160 per dollar on Tuesday, remaining at a key psychological level that 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 Finance 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.
2026-09-01
Yen Languishes Near 1-Month Low
The Japanese yen traded around 160 per dollar on Monday, hovering near one-month lows as the dollar strengthened following hawkish remarks from Federal Reserve Chair Kevin Warsh that boosted expectations for a US rate hike in September. Markets are now pricing in around a 57% chance that the Fed will raise rates by 25 basis points next month, up sharply from about 40% a week ago. Traders are also betting on a potential Bank of Japan rate increase in September amid concerns over yen weakness and import-driven inflation. 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 Middle East conflict. The currency is set to lose about 1.5% for the month.
2026-08-31