Key Developments
According to Reuters reporting on August 31, 2026, the dollar traded at 159.75 yen, nearing the 160-yen mark. Japan’s Ministry of Finance announced on August 3 that it had coordinated with the U.S. Treasury to conduct a joint foreign-exchange intervention to buy yen on July 31. However, as yen weakness has resurfaced despite the joint intervention, market attention is shifting to the Bank of Japan’s next policy decision.
The key point confirmed so far is that two developments coexist: “a joint intervention took place” and “yen weakness has returned.”
Current Status
U.S. Treasury Secretary Scott Bessent said he expects the Japanese government and the Bank of Japan to take measures that would lead to a stronger yen. Related reports interpreted the remarks as signaling a possibility of a Bank of Japan rate hike in September.
However, official Bank of Japan materials have not confirmed a September rate hike. The BOJ says it is currently guiding the uncollateralized overnight call rate to around 1.0%. A summary of opinions from the July 30–31 meeting included views on the risk of inflation exceeding 2% and the need to adjust the policy rate, but it is not a finalized decision for September.
Impact
Yen weakness could affect Japan’s import prices as well as the cost of travel and consumption in Japan for people paying in Korean won. However, the actual cost borne by Korean travelers and consumers is not determined by the yen alone. The won-yen exchange rate can vary depending on the relative movements of the won and yen and the timing of payment.
The Bank of Japan’s rate decision or additional foreign-exchange measures could affect the yen’s direction, but neither a specific direction nor a specific effect can be stated with certainty. The U.S.-Japan finance ministers’ joint statement also said exchange rates should be determined by markets and that foreign-exchange intervention should be limited to addressing excessive volatility and disorderly movements.
Next Checkpoint
The Bank of Japan’s next Monetary Policy Meeting is scheduled for September 17–18, 2026. The following points will be important to monitor:
- Whether the Bank of Japan actually adjusts its policy rate
- Whether additional measures intended to support yen strength are announced
- How the yen-dollar and won-yen exchange rates move at the same reference time
A September rate hike cannot be confirmed based solely on the information currently available. At the time of publication, the yen-dollar and won-yen exchange rates should be checked again using the same reference time.