Japanese Yen Could Stay Weak if BOJ Keeps Real Rates Negative -- Market Talk

0934 GMT - The Japanese yen's weakness looks set to persist as the Bank of Japan is unlikely to deliver any significant policy changes on Friday or signal a faster pace of tightening, Union Bancaire Privee's Peter Kinsella says in a note. The yen continues to illustrate negative real inflation-adjusted interest rates, he says. "In the absence of a credible commitment to raise rates aggressively, we struggle to see yen appreciation even if the BOJ would like to see this." Investors should expect more threats from Japanese authorities about interventions to prop up the yen but talk is cheap, he says. The dollar falls 0.2% to 163.57 yen but remains near the 40-year high of 163.98 reached last week, LSEG data show. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 29, 2026 05:34 ET (09:34 GMT)