USD/JPY rose into the low ¥156 range in the foreign exchange market on 17 September 2026. The previous close was ¥156.26, with the move driven by the FOMC's 0.25% rate hike and expectations of further rate increases before year-end.
On 17 September 2026, USD/JPY traded in the low ¥156 range, representing dollar strength of approximately ¥1.16 against the yen from the previous business day. The U.S. Dollar Index rose to around 100.33, reaching its highest level since July.
The main driver of the dollar's strength was the Federal Reserve Board's (FRB) 0.25% rate hike and its change to the target range for the federal funds rate, which was set at 3.75–4.00%. The possibility of further rate hikes was signaled, strengthening expectations of higher U.S. interest rates and a wider interest-rate differential between the United States and Japan.
Rising long-term U.S. Treasury yields also supported the dollar. The 2-year Treasury yield remained in the 4.7% range, while the 10-year yield stayed near 5%, both at elevated levels. Growing attention to the U.S.-Japan interest-rate differential accelerated yen selling and dollar buying.
Going forward, developments at the Bank of Japan's monetary policy meeting are expected to affect USD/JPY. Market attention will focus on movements in the U.S.-Japan interest-rate differential, expectations of further FRB rate hikes, and the release of U.S. economic indicators.