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.