Yen Slips to 157.47 Per Dollar as BOJ Lags Hawkish Global Central Banks

The yen weakened to 157.47 against the dollar on September 22, 2026, pressured by a widening rate gap as the Bank of Japan struggles to match hawkish pivots by the Federal Reserve and other major central banks. The BOJ's rate hike on September 18 drew two dovish dissents, contrasting with the Fed's hike last week. Union Bancaire Privée economist Carlos Casanova projects the roughly 275-basis-point US-Japan rate differential will sustain yen-funded carry trades, forecasting dollar/yen at 160 by year-end 2026. Markets price about a 30% chance the BOJ lifts its benchmark to 1.5% in October and roughly 55% odds the Fed raises rates 25 basis points to 4%-4.25%. Japan's holiday and intervention risk, after the Nikkei reported a Friday rate check, contained moves. The euro rose to $1.1476 and sterling to $1.3383. The Aussie held at $0.7120 and the kiwi gained 0.4% to $0.5736. Bitcoin fell about 2% after touching an eight-month high above $87,000.