28.09.202602:21:46UTC+00Yen Remains Under Pressure

The Japanese yen weakened toward 158 per dollar on Monday, giving back part of the previous session’s advance as a stronger US dollar and elevated Treasury yields continued to pressure the currency. The move came amid solid expectations that the Federal Reserve will further tighten monetary policy to contain inflation. Rising oil prices also intensified inflation concerns and added strain to Japan’s oil-dependent economy.

On Friday, the yen had strengthened by 1% after Finance Minister Satsuki Katayama said that President Donald Trump raised concerns about the yen during a meeting with Prime Minister Sanae Takaichi. Katayama reiterated that she would continue to coordinate closely with her US counterpart, Scott Bessent, following the first coordinated yen-buying intervention by Japan and the United States since 1998, conducted in late July.

Meanwhile, a former Bank of Japan official said the central bank could raise its benchmark interest rate for a second consecutive month in October, citing heightened inflationary risks.