{
  "id": 1901811,
  "title": "Japanese Yen: BoJ’s hawkish pivot reshapes outlook against US Dollar - Standard Chartered",
  "url": "https://urgent.news/2026/08/19/japanese-yen-bojs-hawkish-pivot-reshapes-outlook-against-us-dollar",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-19T08:49:16.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/japanese-yen-bojs-hawkish-pivot-reshapes-outlook-against-us-dollar-standard-chartered-202608190849"
  },
  "original_language": "en",
  "account": "The Bank of Japan's (BoJ) hawkish turn is altering market expectations for the Japanese Yen against the US Dollar, according to Standard Chartered strategists. The bank has moved up its anticipated rate hike from October to September, and has raised its terminal rate outlook to 1.75% from 1.50%. This suggests two additional rate hikes in 2027, with the BoJ aiming for a terminal rate of 1.75% by the end of 2027, up from its earlier forecast of 1.5%.\n\nThe strategists caution that foreign exchange intervention remains a risk, as the USD/JPY exchange rate remains near 160. However, they still anticipate the Yen to trade at around 158 by the end of Q3 and 160 by the end of Q4. This shift in expectations highlights the BoJ's more aggressive stance compared to the market, which anticipates a terminal rate of around 2.0% by the end of 2027.\n\nDespite the BoJ's shift in policy, Standard Chartered analysts doubt its ability to outpace the market in terms of rate hikes. They believe the pace of hikes will be gradual, given the slow economic growth and higher fiscal burden faced by Japan. The bank also warns that FX intervention could still occur as capital outflows weigh on the Yen, with USD/JPY trading near 160. The strategists maintain their USD/JPY targets of 158 by the end of Q3 and 160 by the end of Q4.\n\nLooking ahead, the strategists expect the BoJ to hike interest rates by 25 basis points (bps) in September, followed by further hikes in Q1 and Q3 of 2027. This marks a more aggressive approach compared to the previous forecast, which only anticipated hikes in October and Q2 of 2027. The revised outlook implies a higher terminal rate of 1.75% in this rate-hike cycle, compared to the previous estimate of 1.5%.\n\nThe analysts also note that the BoJ may need to resort to further FX intervention to counteract the strong US Dollar, which is currently trading close to 160. However, they still expect the Yen to reach 158 by the end of Q3 and 160 by the end of Q4, driven by yield-insensitive capital outflows. This outlook is based on a combination of factors, including the BoJ's more hawkish stance, the weak US economic data, and the potential for FX intervention to support the Yen.",
  "summary": "Standard Chartered strategists have revised its Bank of Japan (BoJ) rate outlook, bringing forward its expected 25bps hike from October to September and raising its terminal rate forecast to 1.75% from 1.50% previously.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}