Yen Holds Near 160 as Markets Price Bank of Japan Action and Oil Risk

Singapore, 1 September 2026 – The yen stabilised close to 160 per US dollar as traders weighed pressure for a Bank of Japan rate increase against high US yields and a worsening energy-import bill. The currency traded around 159.81 per dollar after weakening beyond 160 in the previous two sessions. US Treasury Secretary Scott Bessent said he expected Japan's government and central bank to take action supportive of the yen, strengthening expectations for a policy move later in September.

Brent crude rose above US$91 after renewed US-Iran attacks, worsening Japan's terms of trade and adding imported inflation. A single rate increase may not be sufficient for a durable currency recovery if the yield gap with the United States remains wide and energy costs continue rising. The figures should be considered within the broader setting of Japanese currency and central-bank policy, where short-term market reactions can differ from the longer-term economic effect.