27-Feb-2026      11:54

Yen steadies near 155.8 as policy caution prevails

The Japanese yen edged up to around 155.8 per dollar on Friday but remained set for a second straight weekly loss, as uncertainty over Bank of Japan policy continued to cap gains. Recent government nominations to the BOJ board and comments from Prime Minister Sanae Takaichi have reinforced expectations of a cautious approach to further rate hikes. Tokyo inflation slowed to its weakest pace in over a year, helped by utility subsidies that lowered energy costs, strengthening the case for the BOJ to delay near-term tightening. Meanwhile, the dollar index slipped below 97.6 and traded sideways through the week as investors awaited US inflation data. The Federal Reserve is expected to keep rates on hold at least until June, balancing elevated inflation against labor market risks.

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