The yen edged lower on Tuesday, with the dollar trading near 157.95 yen in early European hours ahead of US inflation data, even as a summary of the Bank of Japan’s October meeting showed board members see a near-term rate hike as necessary.
MoneyTurkey Currencies Desk | 10 November 2026
Key points
- The dollar rose modestly to about 157.95 yen; FXStreet and Rabobank note the market has been reluctant to push it above about 158.70, where the 200-day moving average sits.
- BoJ board members see a near-term hike as necessary, the October summary of opinions showed, keeping a December move in play.
- Japan spent a record 7.98 trillion yen ($50.36 billion) on July 30 alone, Ministry of Finance data released Monday showed.
What the BoJ said
“The Bank should decide on the next policy interest rate hike when it is possible without becoming overly cautious,” one of the nine board members said, according to the summary released Tuesday. Rabobank said a late-week selloff in the Nikkei 225 had cooled bets on a December hike, but that strong September wage data supports further tightening next month and into next year. The bank sees the dollar easing to about 155 yen over three months.
The intervention bill
Quarterly Ministry of Finance figures released Monday showed Japan intervened in the currency market on three days between July 30 and August 3. The July 30 operation, 7.98 trillion yen ($50.36 billion), beat the previous one-day record of 6.28 trillion yen (about $40 billion at today’s rate) set on April 30. Rabobank said the summer support included joint action with the US Treasury, and called the yen the second-best performing G10 currency in the half year to date.
Weak yen still pays for exporters
Honda Motor on Tuesday raised its full-year net profit forecast to 500 billion yen ($3.2 billion) from 400 billion yen, Nikkei Asia reported, as the weak yen cushions the cost of its retreat from electric vehicles.
The US side
Economists expect October US consumer prices to rise 0.3% on the month, with core prices up 0.2%, FXStreet said; the release will carry no annual October reading because of last year’s government shutdown. Fed policymaker Daly struck a more hawkish tone than usual, saying inflation “has to be number 1 priority” and that policy “will have to” tighten further, with timing dependent on data. A hot print would back the dollar against the yen; a soft one would ease pressure.
What to watch
- US October CPI later on Tuesday
- Any fresh warnings from Japanese officials if the dollar tests 158.70
- Japan Q3 GDP and October national CPI, both due next week
- The BoJ December policy meeting
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For information only. Not investment advice.
Sources
- FXStreet: fxstreet.com
- Nikkei Asia: asia.nikkei.com
