Will the Yen Continue to Strengthen Amid a Weakening Dollar Due to Falling U.S. Interest Rates and Governor Ueda’s Remarks?

Will the Yen Continue to Strengthen Amid a Weakening Dollar Due to Falling U.S. Interest Rates and Governor Ueda’s Remarks?

16.10.2026 New

In the U.S. currency market the previous day, the U.S. dollar fell against major currencies despite strong U.S. economic indicators. While the U.S. September PPI rose 1.3% month-over-month and retail sales increased 0.8%—both exceeding expectations—long-term interest rates fell due to buying of U.S. Treasuries driven by debt concerns surrounding AI-related companies.The Dollar Index fell 0.45% to 101.99. The dollar-yen pair also fell to the 157.50 level before rebounding to the 158.10 level, and today it has been trading in the range of the upper 157s to the lower 158s.

European currencies rose as the dollar weakened, with the euro and the pound gaining ground. The euro rose to around $1.1218, while the pound climbed to around $1.3275, supported by the fact that the UK’s August GDP unexpectedly rose 0.1% month-over-month.During today’s Asian trading session, the euro/dollar pair is trading in the low 1.12 range, while the pound/dollar pair is hovering around 1.33. We will be watching to see if the revised eurozone HICP data, due at 6:00 p.m., will shift the direction of European interest rates and the euro.

Today’s key economic indicators include remarks by Bank of Japan Governor Ueda at 3:30 p.m., the revised September HICP for the eurozone at 6:00 p.m., September housing starts in Canada at 9:15 p.m.,U.S. September import and export price indices at 9:30 p.m., and U.S. September industrial production and capacity utilization at 10:15 p.m. In addition to monitoring the yen’s reaction to Governor Ueda’s remarks, we will be watching to see if the relative strength of the euro and the pound shifts in response to the eurozone inflation data.