Dollar Steady, Yen Near 7-Month High Ahead of Fed and BOJ Meetings

PUBLISHED Sep 13, 2026, 9:58 PM ET

The United States dollar remained steady while the Japanese yen hovered near a seven-month high as global financial markets prepared for high-stakes monetary policy meetings by the U.S. Federal Reserve and the Bank of Japan. The Japanese yen traded at 153.49 per U.S. dollar, staying close to the seven-month peak of 152.89 reached the previous week. Market sentiment toward the Japanese currency shifted as speculators moved into a net long position on the yen for the first time since February. Analysts at MUFG indicated that a 25 basis point interest rate hike is almost fully priced in by markets. For the yen to extend its gains, the Bank of Japan must signal its intention to maintain a faster pace of rate increases. Conversely, analysts at TD Securities warned that omitting a potential rate hike from guidance for either the October or December meetings could trigger a sharp dollar-to-yen rally back toward the 157 to 160 range. The yen gained 4% over the month, propelled by growing expectations of rapid monetary tightening by the BOJ and potential asset repatriation by domestic investors. James Athey, a fixed-income portfolio manager at Marlborough, noted that failing to implement expected hikes or communicate robustly would be a major misstep for policymakers. Concurrently, energy markets experienced upward pressure as Brent crude futures surged nearly 3% to $107.51 per barrel in early Asian trading following fresh geopolitical supply anxieties.

By Yusra M. | JQJO News

Media Bias

Articles Published:: 29
Right Leaning:: 3
Left Leaning:: 1
Neutral:: 25

Explain Framing

Left: Emphasizes worker wage pressures and broader economic inequality risks. Center: Reports currency movements and central bank expectations with neutral data. Right: Focuses on inflation impacts, monetary tightening, and market efficiency.