Yen Remains Under Pressure

2026-09-28 02:21 By Jam Kaimo Samonte 1 min. read

The Japanese yen weakened toward 158 per dollar on Monday, giving back some of the previous session’s gains as a stronger dollar and elevated Treasury yields continued to weigh on the currency, amid firm expectations that the Federal Reserve will further tighten policy to contain inflation.

Rising oil prices also fueled inflation concerns while putting additional pressure on Japan’s oil-dependent economy.

On Friday, the yen gained 1% after Finance Minister Satsuki Katayama said President Donald Trump had raised concerns about the yen during a meeting with Prime Minister Sanae Takaichi.

Katayama reiterated that she would continue coordinating with her US counterpart Scott Bessent after Japan and the US conducted their first coordinated yen-buying intervention since 1998 in late July.

Meanwhile, a former Bank of Japan official said the central bank could raise its benchmark interest rate for a second consecutive month in October, citing heightened inflationary risks.



News Stream
Yen Remains Under Pressure
The Japanese yen weakened toward 158 per dollar on Monday, giving back some of the previous session’s gains as a stronger dollar and elevated Treasury yields continued to weigh on the currency, amid firm expectations that the Federal Reserve will further tighten policy to contain inflation. Rising oil prices also fueled inflation concerns while putting additional pressure on Japan’s oil-dependent economy. On Friday, the yen gained 1% after Finance Minister Satsuki Katayama said President Donald Trump had raised concerns about the yen during a meeting with Prime Minister Sanae Takaichi. Katayama reiterated that she would continue coordinating with her US counterpart Scott Bessent after Japan and the US conducted their first coordinated yen-buying intervention since 1998 in late July. Meanwhile, a former Bank of Japan official said the central bank could raise its benchmark interest rate for a second consecutive month in October, citing heightened inflationary risks.
2026-09-28
Yen Rebounds on Katayama Remarks
The Japanese yen strengthened to around 158 per dollar on Friday, recovering from two-week lows and snapping a five-session losing streak after Finance Minister Satsuki Katayama said President Donald Trump had expressed concerns about the yen during a meeting with Prime Minister Sanae Takaichi earlier this week. Markets were already alert to the possibility of intervention as the currency approached the key 160 level, which could test Tokyo’s tolerance for further yen weakness. Katayama reiterated that she would continue coordinating with her US counterpart Scott Bessent after Japan and the US carried out their first coordinated yen-buying intervention since 1998 in late July. The yen has faced renewed pressure as expectations for additional Federal Reserve rate hikes threaten to keep the US-Japan interest-rate differential wide. Uncertainty over the pace at which the Bank of Japan can continue tightening policy has also weighed on the currency.
2026-09-25
Yen Remains on Intervention Watch
The Japanese yen traded around 158.5 per dollar on Friday, staying near two-week lows and close to the key 160 level that could test Tokyo’s tolerance for further yen weakness. The currency also remained under pressure from a stronger dollar and surging Treasury yields as expectations grew that the Federal Reserve will tighten policy further to curb inflation. Moreover, the yen weakened as the Bank of Japan’s rate hike last week was viewed as insufficiently hawkish, with two officials dissenting from the decision. Meanwhile, former board member Makoto Sakurai said the central bank is expected to raise interest rates roughly once every three months, potentially lifting them to 2% by around June next year as it seeks to tackle mounting inflationary pressures.
2026-09-25