Japan's currency jumps as markets bet on higher interest rates

Japan's yen rose 1.7% to 155.85 per dollar on 3 September 2026 — its highest in a month — after gaining 0.9% the day before. A stronger yen often signals confidence that Japan will raise interest rates. Traders now see a 77% chance the Bank of Japan does so on 17 September, after its governor said a hike would be debated and one policymaker urged acting "nimbly."