Yen weakens towards 156 as Fed tightening bolsters dollar
Mumbai, Sept. 17 -- The Japanese yen traded around 156.2 per dollar on Thursday, extending losses for a third consecutive session as the dollar strengthened following the Federal Reserve's 25-basis-point rate hike on September 16. The Fed lifted rates to 3.75-4%, its first increase since 2023, while updated projections pointed to further tightening and higher inflation expectations through 2026. The yen's earlier September rally, fuelled by expectations of a Bank of Japan rate hike, and has since reversed as the US-Japan rate differential remains pronounced. Attention now turns to the BOJ, which is expected to raise borrowing costs on Friday, potentially narrowing the policy gap.
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