U.S. forex market summary: Dollar temporarily softens to 158.20 yen range on expectations of accelerated BOJ rate hikes

Thu Sep 3, 2026 7:55 am JST Currency

In the New York foreign exchange market on the 2nd, the dollar traded around 158.71 yen, down about 1.50 yen from the previous session, reflecting dollar weakness and yen strength. The euro traded around 183.93 yen, down about 1.75 yen, also reflecting euro weakness and yen strength.

Yen buying intensified on expectations that the Bank of Japan (BOJ) would accelerate rate hikes, after BOJ Policy Board Member Hajime Takata told a news conference on the afternoon of the 2nd that raising rates twice a year was a conventional idea, and that consecutive rate hikes are possible if circumstances change. Data from U.S. private payroll processor ADP showed August private-sector employment missed market expectations, weighing on the dollar. Just after 10:10 p.m. Japan time, the dollar plunged over 1 yen to hit a temporary low of 158.22 yen. Speculation spread that Japanese authorities intervened in the FX market, or U.S. authorities conducted a rate check ahead of intervention. While the dollar subsequently stabilized, recovery was limited after New York Federal Reserve President John Williams told CNBC that inflation is on a gradual downward trend.

Against the dollar, the euro traded around $1.1588, up about $0.0005 from the previous session, reflecting euro strength against the dollar.

Source: MINKABU PRESS

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

U.S. forex market summary: Dollar temporarily softens to 158.20 yen range on expectations of accelerated BOJ rate hikes

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