USD/JPY news for August 1, 2026
The Bank of Japan left its policy rate unchanged at 1.00%, a widely expected decision with no surprises, while noting inflation around its 2% target. With Governor Ueda's guidance now in focus, the yen's reaction was muted, but suspected intervention and a renewed rally in EUR/JPY suggest ongoing pressure on the currency. The steady policy stance leaves the yen's direction tied to upcoming central bank signals and potential intervention risks.
How the day unfolded
The Bank of Japan held its policy rate at 1% as widely expected, but warned that underlying inflation could exceed its 2% target, keeping attention on Governor Ueda's forward guidance. Investors are scrutinizing the BOJ's credibility on inflation fighting after this decision, which is a key factor for yen movements and thus USD/JPY. The market is now focused on how policy expectations may shift following this week's events.
The Bank of Japan held its policy rate at 1.00%, a move widely anticipated, while warning that underlying inflation could exceed its 2% target. With no surprises in the decision, market attention turns to Governor Ueda's guidance for clues on future policy. This leaves USDJPY largely driven by the BOJ's steady stance and the yen's reaction to the central bank's outlook.
The Bank of Japan kept its policy rate at 1.00%, a move widely expected, and maintained its view that inflation is around 2%, though some officials warned of underlying inflation exceeding the target. The lack of surprises turns attention to Governor Ueda's guidance, while the prior suspected yen intervention adds caution. This steady policy stance leaves USDJPY focused on future policy signals and intervention risks.
The Bank of Japan left its policy rate at 1.00% as widely expected, reiterating inflation near 2% while also warning that underlying price growth could exceed the target. The decision drew focus to Governor Ueda's guidance on future moves, with the yen's direction now tied to his commentary and any suspected intervention. The lack of a surprise in the BOJ's stance left the yen weaker in cross trades, a key dynamic for USDJPY.
The Bank of Japan left rates at 1.00%, with attention now on Governor Ueda's guidance after the policy decision. Headlines also point to underlying inflation potentially exceeding the 2% target and mention suspected yen intervention, while EUR/JPY rallied above 185.00. These factors are currently influencing the yen against the dollar.
Headlines (10)
- Investors warn BoJ faces test to inflation-fighting credibilitywww.ft.com · Jul 30, 01:06 UTC
- Bank of Japan set to keep interest rates unchanged after suspected Yen interventionwww.fxstreet.com · Jul 30, 22:01 UTC
- Yen’s Focus on BOJ Gov. Ueda’s Guidancewww.wsj.com · Jul 31, 00:40 UTC
- EUR/JPY rallies further above 185.00 against Japanese Yen after BoJ’s policy decisionwww.fxstreet.com · Jul 31, 03:21 UTC
- BOJ holds rates at 1%, warns of underlying inflation exceeding 2% targetwww.cnbc.com · Jul 31, 03:36 UTC
- Bank of Japan Stands Pat, Continues to See Inflation Around 2%www.wsj.com · Jul 31, 03:57 UTC
- How have interest rate expectations changed after this week's events?investinglive.com · Jul 31, 11:00 UTC
- Pan Gongsheng: Speech - Hong Kong FIC and Bond Connect Summitwww.bis.org · Jul 31, 12:49 UTC
- Three central banks held rates this week. Here's what has them all worriedwww.fxstreet.com · Jul 31, 13:39 UTC
- Bank of Japan leaves rates at 1.00% with no surprisesthink.ing.com · 00:02 UTC
Scheduled events
As of 22:49 UTC
- 2026-08-03 — Final Manufacturing PMI · forecast 54.7 · JPY
- 2026-08-03 — Final Manufacturing PMI · forecast 53.8 · USD
- 2026-08-03 — ISM Manufacturing Prices · forecast 70.0 · USD
- 2026-08-03 — Construction Spending m/m · forecast 0.2% · USD
- 2026-08-03 — ISM Manufacturing PMI · forecast 54.0 · USD
- 2026-08-03 — Monetary Base y/y · forecast -13.0% · JPY
- 2026-08-03 — Loan Officer Survey · USD
- 2026-08-03 — Omdia Total Vehicle Sales · forecast 16.3M · USD
Not investment advice. For informational purposes only.