The Japanese yen weakened toward 158 per dollar on Thursday, extending its slide for a fourth consecutive session as the US dollar strengthened on the back of faster US inflation. The data reinforced expectations that the Federal Reserve may keep interest rates elevated for longer, or even implement an additional rate hike.
Sentiment toward the yen was further dampened by the lack of clear, large-scale intervention from Japanese authorities, though traders remain wary of potential action after US Treasury official Scott Bessent voiced support for Tokyo’s recent efforts to stabilize the currency.
On the monetary policy front, the Bank of Japan’s April Summary of Opinions indicated that policymakers discussed the possibility of additional interest rate hikes as early as the next meeting, with rising oil prices adding complexity to the inflation outlook. Separately, the OECD projected that the BOJ’s policy rate could reach 2% by the end of 2027.
