Yen Consolidates Amid Holiday-Thinned Trading

2026-09-21 00:27 By Jam Kaimo Samonte 1 min. read

The Japanese yen consolidated near 157 per dollar on Monday after falling more than 2% last week, with traders remaining on alert for possible intervention as Japan begins a three-day holiday.

Tokyo has previously used periods of thin holiday liquidity to intervene in currency markets, while concerns were heightened by reports that the Bank of Japan conducted a rate check with market participants late Friday.

The yen weakened sharply last week after the BOJ raised interest rates in a widely anticipated move, with two policymakers dissenting from the decision.

Governor Kazuo Ueda said the BOJ remains committed to raising rates and adjusting the degree of monetary accommodation in response to changing economic conditions, while noting that accommodative conditions are expected to remain in place to support growth.

The yen also came under pressure from expectations that Japan’s rate-hiking cycle could move more slowly than the Federal Reserve’s.



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