Yen steadies near 40-year low on rate-hike bets and intervention talks

The Japanese yen recovered slightly from its weakest level in nearly four decades on July 22, 2026, trading near 163 per dollar. The currency's stabilization followed a Bloomberg report that Bank of Japan officials are open to raising rates faster than economists expect, fueling speculation of intervention by Tokyo. Japan's Finance Minister Satsuki Katayama reiterated that authorities would take decisive action against excessive yen weakness. However, analysts note that past interventions have only bought time, not reversed the yen's broader decline driven by dollar strength and still-low BOJ rates. Political concerns persist under Prime Minister Sanae Takaichi, with the government urging the BOJ to align policy. Meanwhile, the pound fell for a fifth consecutive day after UK inflation cooled more than expected in June, reducing the odds of Bank of England rate hikes. Brent crude futures rose to near $95.50 per barrel, and the 30-year U.S. Treasury yield breached 5%, supporting the dollar.