According to the Foreign Exchange Rates table released by the Bank of Japan, at 9:00 AM on July 13th, Japanese time, the USD/JPY exchange rate was recorded at 161.91-161.92 yen per 1 USD.
By 5 pm on the same day, the exchange rate increased to 162.09-162.11 yen per 1 USD. During the session, USD/JPY fluctuated from 161.84 to 162.36; the central exchange rate was determined by the Bank of Japan at 162.10 yen/USD. The increase in the USD/JPY exchange rate means that the yen depreciated against the USD.
Compared to 161.69-161.71 yen/USD at 5 pm on July 10, the yen has decreased by about 0.25% in the next trading session. Previously, on July 10, the USD/JPY exchange rate fluctuated in the range of 161.29-162.43.
The above developments show that the yen continues to trade in a weak zone around 162 yen/USD, although the exchange rate still fluctuates quite strongly in each session.
In the FX Viewpoint public foreign exchange report on July 3, HSBC said that this bank forecasts the USD/JPY exchange rate may continue to increase until mid-2027. HSBC also predicted that the USD is still likely to strengthen against the yen, assuming the interest rate difference between the US and Japan continues to remain high.
In fact, the yen also depends on the monetary policy of the two countries, US economic data, bond yield developments and the responsiveness of Japanese regulators.
At a public press conference on July 3, Japanese Finance Minister Satsuki Katayama said that the Japanese Government's policy towards the foreign exchange market has not changed and functional agencies are ready to take appropriate measures when necessary.
Ms. Katayama did not comment on a specific exchange rate level. The Japanese Finance Minister also said that Japan maintains close exchanges with the US on foreign exchange issues.
Also at this press conference, the press question cited the number of bankruptcies related to the weak yen in Japan increasing from 34 cases in the first half of 2025 to 45 cases in the first half of 2026. Minister Katayama said that the Government will continue to closely monitor the situation and implement appropriate economic management measures.
The weakening yen may increase Japan's import costs of fuel, raw materials and goods in USD. However, the level of impact depends on international commodity prices, the ability of businesses to shift costs and government support policies.
