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.
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.