Japanese Yen Faces Further Weakness Unless BOJ Signals Rate Rises -- Market Talk

0930 GMT - The Japanese yen faces further potential weakness unless the Bank of Japan provides "hawkish" signals about future interest-rate rises when it announces its next policy decision on Friday, MUFG Bank's Lee Hardman says in a note. The BOJ is expected to leave rates steady but market participants will be watching closely for any hints about future tightening following media reports that the central bank is open to a faster pace of rate rises. The yen could fall in the absence of such guidance, particularly if the Federal Reserve raises rates on Wednesday, he says. The dollar falls 0.2% to 163.53 yen, having reached a 40-year high of 163.98 last Thursday, LSEG data show. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 27, 2026 05:30 ET (09:30 GMT)