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Yen slides as Fed minutes revive odds of further US tightening

Money markets are pricing a roughly 52.0% chance of a 25-basis-point September hike and a 18.0% chance of a 50-bps move.

Thursday, July 9, 2026 · Written up by our desk · Major Pairs

The Japanese yen weakened versus the US dollar, with USD/JPY trading around 162.54 after bottoming near 162.03, as Federal Reserve minutes from the central bank’s last meeting revived expectations for additional US policy tightening, FXStreet reported.

According to the minutes, officials broadly agreed to leave rates unchanged and saw a stable labor market, but many participants suggested that “some policy firming would likely be warranted,” with some preferring not to repeat prior language.

Traders also linked broader risk sentiment to a change in tone from US President Donald Trump regarding Iran, which boosted the greenback as the US Dollar Index reclaimed the 101.00 area, FXStreet said.

The Fed-linked shift also showed up in rates, with the US 10-year Treasury yield up about 1.5 basis points to 4.569%, reinforcing upward pressure on USD/JPY above 162.00 and keeping focus on upside levels if 162.84 is breached.

Latest closeUSD/JPY 163.42 ▼0.2%|Dollar index 100.80 ▼0.6%

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