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USD/JPY news for July 28, 2026

The Japanese yen continues to weaken against the US dollar, hitting a 40-year low, despite the Bank of Japan's tightening stance. The USD/JPY pair is leading G10 FX volatility as markets digest geopolitical developments, including de-escalation hopes regarding US-Iran tensions. The yen's persistent weakness is attributed to factors such as its use as a funding currency and the divergence between BoJ policy and other major central banks.

How the day unfolded

  1. The Japanese yen hit a 40-year low against the US dollar, leading to heightened G10 FX volatility. Despite recent Bank of Japan tightening, the yen remains weaker, though it staged a modest recovery at the start of a week featuring both Fed and BoJ policy meetings.

  2. USD/JPY has experienced heightened volatility, hitting a 40-year low for the yen, even as the Bank of Japan signals tighter policy. The yen's weakness persists against the dollar, driven by divergent central bank stances and broader USD strength, despite some temporary gains ahead of central bank decisions.

  3. USD/JPY remains elevated near 40-year lows as the Bank of Japan's tightening efforts have not been enough to offset the dollar's strength from hawkish Fed policy. The yen saw a brief recovery at the start of the week ahead of key central bank decisions, but the broader trend remains dollar-positive.

  4. The Japanese yen weakened to a 40-year low against the US dollar, although it saw some gains at the start of the Fed and BoJ policy week. Despite expectations of BoJ tightening, the yen remains under pressure, with the broader uptrend for USD/JPY still intact.

  5. The yen weakened to a 40-year low against the dollar, despite Bank of Japan tightening expectations, as geopolitics and divergent monetary policy continue to drive the pair. A de-escalation in US-Iran tensions and regional backing for a Strait of Hormuz proposal have reduced safe-haven demand for the yen, while markets await Fed and BoJ decisions this week.

  6. USD/JPY has seen elevated volatility as the yen hit a 40-year low, despite Bank of Japan tightening expectations. Geopolitical headlines, including de-escalation hopes regarding US-Iran tensions and regional backing for Oman's proposal on the Hormuz Strait, have influenced risk sentiment and weighed on safe-haven demand for the yen.

  7. The yen hit a 40-year low against the dollar, with USD/JPY leading G10 FX volatility, as geopolitical de-escalation hopes reduced safe-haven demand for the yen. Despite Bank of Japan tightening, the yen continues to weaken, reflecting persistent policy divergence and broader market dynamics.

  8. USD/JPY is being driven by persistent interest rate differentials favoring the dollar, as the Bank of Japan's tightening has not offset the yen's weakness, with the pair hitting a 40-year low. Geopolitical tensions have slightly eased following de-escalation signals from the US and Iran, reducing safe-haven demand for the yen and supporting USD/JPY.

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As of 22:25 UTC

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Not investment advice. For informational purposes only.