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Tokyo forex summary: Dollar slips to mid-159 yen range amid growing BOJ rate hike expectations

Wed Sep 2, 2026 3:37 pm JST Currency

In the Tokyo foreign exchange market on the 2nd, the dollar traded around 159.82 yen as of 3:00 p.m., down slightly over 10 sen from 5:00 p.m. the previous day, reflecting dollar weakness and yen strength. The euro traded at around 185.07 yen, down slightly over 40 sen, also reflecting euro weakness against the yen.

The dollar traded around 160.20 yen at 9:00 a.m. and briefly rose to around 160.39 yen just after 10:50 a.m. In the previous New York session, rising crude oil prices pushed up long-term bond yields, fueling dollar buying. However, the trend reversed as dollar selling and yen buying gained traction, pushing the pair below 160 yen just after 2:10 p.m. The shift followed reports that Bank of Japan Policy Board member Hajime Takata noted at a Sapporo news conference that Japan's real interest rates remain still quite low. The remarks reinforced expectations for additional BOJ rate hikes, prompting yen buying.

Against the dollar, the euro traded around $1.1580, up slightly over $0.0010, reflecting euro strength against the dollar.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.