The Japanese yen surged to 152 before retreating, with bulls and bears locked in an intense tug of war ahead of Super Central Bank Week.
智通财经2026/09/08 13:01- The Japanese yen briefly strengthened to 152.89 per US dollar in early Tuesday trading, surpassing the level seen during Japan’s intervention in July and reaching its strongest point since February, before retreating to around 154 during the European and New York morning sessions and ending the day roughly unchanged.
- The US Dollar Index edged up by about 0.2%, with the 10-year US Treasury yield climbing back toward multi-year highs as the market concerns that ongoing Middle East conflicts could push up energy prices and inflation expectations, providing support for the dollar.
- Since the start of this quarter, the yen has appreciated by more than 5%, driven by factors including market bets that the Bank of Japan will accelerate tightening, expectations of capital repatriation by Japanese investors, the unwinding of carry trades, and political pressure from the US.
- Institutional strategists believe the yen’s rally is largely driven by market capital flows. Investors are beginning to consider a possible hawkish shift by the Bank of Japan at its September meeting, but the pace of rate hikes is unlikely to exceed market expectations, and the impact of a weaker yen on inflation is diminishing.
- Traders generally expect the Bank of Japan to raise rates by 25 basis points to 1.25% at its September 17-18 meeting. Japan’s Finance Minister said on the same day that Japan and the US are aligned on currency issues and will continue to communicate closely to ensure the orderly functioning of the foreign exchange market.
- The market’s focus has shifted to this week’s US inflation data, the last key data before the Federal Reserve’s September 15-16 meeting. Traders currently price in about a 60% chance of a rate hike this month, with stronger-than-expected nonfarm payroll data having reinforced expectations of a hike.
- Federal Reserve Governor Waller stated last week that inflation dynamics are key to the policy outlook. If price pressures continue to ease, he favors holding steady; however, if inflation does not cool, he supports further rate hikes. The European Central Bank is expected to raise rates on Thursday, and after the pound touched a one-week high of 1.3550, the market awaits comments from Bank of England officials.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
SoftBank plans to meet with investors and is considering a large-scale bond issuance
Corning signs a multi-billion dollar long-term fiber agreement with Verizon, as AI demand spills over from the chip layer to telecom operators.
Corning has signed a multibillion-dollar, decade-long fiber optic supply agreement with US telecom operator Verizon, under which it will provide more than 80 million miles of high-density fiber. The agreement will support both home broadband services and AI data center backbone networks. Previously, Corning had already secured major long-term contracts with Meta, Nvidia, Amazon, and others. The fiber demand from AI data centers is about 16 times higher than that from traditional switches, and combined with network upgrades by operators, this is driving structural growth in fiber demand.
Boeing delivered 51 aircraft in August
The Canadian dollar gave up its intraday gains after Trump's speech.
Crypto prices
More
