Tracks Japan's response to persistent yen weakness from its first yen-buying intervention in 24 years in 2022 through the Bank of Japan's exit from negative rates, successive rate hikes, large-scale interventions in 2024 and 2026, and the 2026 joint U.S.-Japan intervention and prospect of further tightening.
13 events · 17 sources · Updated 28 days ago
The Bank of Japan raised its policy rate to around 1.0% and said it would continue adjusting monetary accommodation through further rate increases as economic, price and financial conditions evolved.
With the yen having fallen to 163.98 per dollar, its weakest level in about 40 years, Japan's Ministry of Finance bought yen in coordination with the U.S. Treasury. The yen subsequently strengthened to as high as 155.21 per dollar.
Finance Ministry data showed that Japan spent 15.3993 trillion yen on foreign-exchange intervention between July 30 and August 26. It was reported as the country's largest monthly effort to support the yen.
The yen extended a roughly 4% gain in September and traded around 153 per U.S. dollar, remaining near its strongest level in about seven months. Market expectations increased that the Bank of Japan would raise its policy rate by another 25 basis points at its September 17–18 meeting, while the yen's rapid appreciation also drew attention to a potential unwinding of yen-funded carry trades.
Bank of Japan Governor Kazuo Ueda's press conference after the September 18, 2026 monetary policy meeting.
The Bank of Japan raised its policy rate from 1.0% to 1.25% in a 7-2 vote. The new rate is the highest level since 1995.