The yen's movements drew attention in international financial markets on the morning of 21 September, while gold fell to $4,368.33 per ounce. The Bank of Japan's rate hike and developments at the Federal Reserve and ECB are influencing the market outlook.
In the foreign exchange market, the yen's movements drew attention following its depreciation the previous week, and the Japanese yen strengthened slightly to around ¥156.64 per US dollar. Liquidity declined in Japan during a 3-day holiday period, while views were divided over the possibility of government intervention. The Bank of Japan raised its policy rate to 1.25% on Friday, but the yen's appreciation was limited by the split vote and the lack of clear guidance on monetary tightening.
Gold prices continued to decline against a backdrop of growing expectations for global rate hikes, falling to $4,368.33 per ounce shortly after trading opened on Monday morning. As expectations strengthened that major central banks, including the Federal Reserve, ECB and Bank of Japan, would maintain their tightening stance, caution over future interest-rate developments spread across the market.
The DXY, which tracks the US dollar, rose on expectations of a Federal Reserve rate hike, and traders raised the probability of an October hike. Market participants said the impact of the midterm elections should not be overestimated, while indicating that the outlook for interest rates from next year onward would depend on the data.
The Japanese stock market has been announced as closed from 21 to 23 September 2026, drawing investor attention alongside developments in overseas markets.