{
  "id": 9073012,
  "title": "Yen squeezed as hawkish turn grips central banks",
  "url": "https://urgent.news/2026/09/22/yen-squeezed-as-hawkish-turn-grips-central-banks-9073012",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T03:05:00.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40440631/yen-squeezed-as-hawkish-turn-grips-central-banks"
  },
  "original_language": "en",
  "account": "The yen has been experiencing downward pressure due to a surge in global interest rates, with policymakers in Japan struggling to keep pace. This has resulted in the country's interest rates being significantly lower than those of major counterparts. The Nikkei newspaper revealed that Japan has been monitoring the dollar/yen rates, potentially indicating a willingness to intervene in the market if necessary. After initially declining on Monday, the yen is currently trading at 157.33 against the dollar, while other financial markets benefit from falling oil prices. Other currency pairs have remained relatively stable, with the euro trading at $1.1467. Cryptocurrencies, however, have shown a notable rally, driving Bitcoin's price to a year-high above $87,000. The yen has faced challenges since the Bank of Japan's interest rate increase on Friday, which was met with two dissents from central bank officials. This stands in contrast to the Federal Reserve's rate hike last week, as well as the hawkish stance of most global central banks. Economists predict that the US-Japan rate differential will persist, supporting yen-funded carry trades unless the Bank of Japan tightens policy more swiftly than the Federal Reserve. Analysts foresee the dollar/yen rate increasing to 160 by the end of the year and then gradually rising to around 156 by mid-2027. The probability of the Bank of Japan raising its benchmark short-term rate to 1.5% in October stands at around 30%, while there is a 55% chance that the Federal Reserve will raise its funds rate window by 25 basis points to 4% to 4.25%. Additionally, Australia's Reserve Bank Governor Michele Bullock is expected to deliver a hawkish message during a fireside chat on Tuesday, with markets pricing a 90% chance of a rate hike the following week. The Australian dollar is currently hovering at $0.7120. Meanwhile, the British pound is trading at $1.3372, and the New Zealand dollar has settled near multi-month lows at $0.5708, as higher-yielding currencies benefit from more attractive carry trade opportunities.",
  "summary": "SINGAPORE: The yen was under pressure from a firm dollar on Tuesday as traders wagered on policymakers in Japan struggling to keep up with a hawkish turn by global central banks, leaving the country’s interest rates at a wide gap with major peers. Moves were contained thanks to a holiday in Japan and because of the risk of intervention, after the Nikkei newspaper reported Japan checked dollar/yen…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "Yen squeezed as hawkish turn grips central banks",
        "url": "https://urgent.news/2026/09/22/yen-squeezed-as-hawkish-turn-grips-central-banks",
        "published": "2026-09-22T00:54:33.000Z"
      },
      {
        "outlet": "New Straits Times",
        "title": "Yen squeezed as hawkish turn grips central banks",
        "url": "https://urgent.news/2026/09/22/yen-squeezed-as-hawkish-turn-grips-central-banks-9063641",
        "published": "2026-09-22T02:19:29.000Z"
      }
    ]
  },
  "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."
}