Yen Weakness Continues Even After BOJ Rate Hike—Will the Dollar-Yen Rate Stay in the 157-Yen Range?

Yen Weakness Continues Even After BOJ Rate Hike—Will the Dollar-Yen Rate Stay in the 157-Yen Range?

18.09.2026 New

In the U.S. currency market the previous day, the U.S. dollar held steady against the yen.Amid lingering expectations of further tightening even after the Fed’s rate hike, the Bank of Japan raised its policy rate to 1.25% today. However, given that the decision was made by a 7-to-2 vote and there were few clear signals indicating a rush to raise rates further, yen selling gained the upper hand, and the dollar-yen pair temporarily rose to 157.145 yen.Governor Ueda’s press conference began at 3:30 p.m., and depending on his comments regarding the timing and pace of further rate hikes, the yen could see significant volatility. We will be watching to see whether the pair can hold above the 157-yen level or if it will be pushed back down to the 156-yen range.

Among European currencies, the euro is trading mainly in the upper 1.14 range against the dollar. Yesterday, the Bank of England (BOE) kept its policy rate unchanged at 3.75%, while indicating that further rate hikes might be necessary if inflation remains stubbornly high.Today’s UK retail sales data for August showed a 0.5% month-over-month increase, exceeding market expectations of a 0.2% decline and signaling the resilience of the UK economy.As for the euro, with expectations of further rate hikes by the ECB persisting and expectations of monetary tightening in the U.S. also continuing, whether it can recover to the $1.15 level is likely to be the immediate focus.

Today, the eurozone’s July current account balance is scheduled for 5:00 p.m., eurozone July construction spending for 6:00 p.m., and remarks by ECB President Lagarde for 7:30 p.m.At 10:15 p.m., U.S. August industrial production and capacity utilization figures will be released, followed by the U.S. August Composite Leading Economic Index at 11:00 p.m. In addition to the yen’s movements following Governor Ueda’s press conference, we will be monitoring the dollar’s reaction to ECB President Lagarde’s remarks during European trading hours and to U.S. economic indicators during New York trading hours.