Yen
Slips Against Dollar Despite Japanese Rate Hike

Tokyo,
22 Sep 2026 (ONA) — The Japanese yen retreated after coming under pressure
during today’s trading, as traders increased bets that policymakers in Japan
will struggle to keep pace with the shift towards monetary tightening adopted
by major central banks, leaving Japanese interest rates at levels far below
their global counterparts.

The
yen’s movements remained limited by the Japanese market holiday and concerns
over official intervention to support the currency, after Nikkei reported that
Japan conducted a rate check on the dollar against the yen on Friday, a step
that often precedes official intervention in the foreign exchange market.

After
declining gradually yesterday, Monday, the yen steadied at 157.33 against the
dollar in early trading today, while global financial markets drew support from
falling oil prices.

Most
other currencies steadied, with the euro standing at around $1.1467, while
cryptocurrencies posted gains over the past 24 hours that drove bitcoin to its
highest level in eight months above $87,000.

Markets
are currently pricing in an approximately 30 percent probability that the Bank
of Japan will raise its short-term interest rate to 1.5 percent in October,
against roughly 55 percent for the likelihood that the Federal Reserve will
raise the federal funds rate range by 25 basis points to 4%-4.25%.

In
Australia, Michele Bullock, Governor of the Reserve Bank of Australia, is
expected to adopt a hawkish tone during a panel session scheduled later on
Tuesday, while markets are pricing in a 90 percent probability of a rate hike
next week, the fourth this year.

The
Australian dollar steadied at around $0.7120, while sterling traded near
$1.3372. The New Zealand dollar remained near its lowest levels in several
months at $0.5708, amid the lower interest rate in New Zealand, standing at
2.75 percent, compared with rate levels in other major economies.

—
Ends/Khalid