Yen Weakens as Safe-Haven Demand Fades

2026-10-27 02:50 By Jam Kaimo Samonte 1 min. read

The Japanese yen depreciated past 157.5 per dollar on Tuesday, extending losses from the previous session and surrendering most of last week’s safe-haven gains as Anthropic’s IPO filing reignited investor interest in the artificial intelligence trade.

Meanwhile, investors are preparing for the Bank of Japan’s policy meeting this week, where interest rates are widely expected to remain unchanged, although policymakers may signal a potential rate hike in December amid mounting inflationary pressures.

Recent data showed that a key indicator of Japan’s services-sector inflation increased 3.7% year-on-year in September, reaching its highest level since June 2024 as labor, transportation, and fuel costs remained elevated.

Investors are also monitoring policy decisions from other major central banks this week, which could influence the yen’s direction, with the US Federal Reserve likewise expected to keep rates steady.



News Stream
Yen Weakens as Safe-Haven Demand Fades
The Japanese yen depreciated past 157.5 per dollar on Tuesday, extending losses from the previous session and surrendering most of last week’s safe-haven gains as Anthropic’s IPO filing reignited investor interest in the artificial intelligence trade. Meanwhile, investors are preparing for the Bank of Japan’s policy meeting this week, where interest rates are widely expected to remain unchanged, although policymakers may signal a potential rate hike in December amid mounting inflationary pressures. Recent data showed that a key indicator of Japan’s services-sector inflation increased 3.7% year-on-year in September, reaching its highest level since June 2024 as labor, transportation, and fuel costs remained elevated. Investors are also monitoring policy decisions from other major central banks this week, which could influence the yen’s direction, with the US Federal Reserve likewise expected to keep rates steady.
2026-10-27
Yen Holds Steady Ahead of BOJ Policy Meeting
The Japanese yen traded around 156.7 per dollar on Monday, remaining near five-week highs as investors awaited the Bank of Japan’s policy meeting later this week. The central bank is widely expected to leave interest rates unchanged before potentially raising them in December amid persistent inflationary pressures. Data released last week showed that both headline and core inflation in Japan climbed 2.1% year-on-year in September, reaching their highest levels in nine months as a weaker yen and elevated energy prices drove up import costs. Investors are also monitoring policy decisions from other major central banks this week, which could influence the yen’s direction, with the US Federal Reserve likewise expected to keep rates steady. Meanwhile, the Japanese currency strengthened last week as a global selloff in technology and artificial intelligence stocks boosted demand for safe-haven assets.
2026-10-26
Yen Rallies on Haven Buying, Strong Inflation
The Japanese yen strengthened toward 156 per dollar on Friday, reaching its highest level in five weeks before paring gains as a global selloff in technology and artificial intelligence stocks boosted demand for safe-haven assets. The equity downturn intensified this week after Meta Platforms’ plans to increase capital expenditure reignited concerns that technology companies may take on more debt to fund the AI buildout. In Japan, data showed that both headline and core inflation rose 2.1% year-on-year in September, marking their highest levels in nine months as yen weakness and elevated energy prices drove up import costs. With underlying inflation returning above the Bank of Japan’s 2% target, market expectations for another interest rate hike this year have strengthened. The BOJ is widely anticipated to leave rates unchanged at its upcoming meeting, potentially paving the way for a rate increase in December.
2026-10-23