The Japanese yen depreciated against the US dollar on 1 October 2026 following the Bank of Japan's release of its September meeting summary, which did not signal an imminent back-to-back rate hike. Market participants had positioned for further monetary tightening guidance; the absence of such signals drove the yen lower. This was reported by Bloomberg Markets and Finnhub.
The Nikkei 225 index rose alongside the yen's depreciation, a pattern consistent with yen weakness benefiting Japanese export-oriented equities. USDJPY moved higher as the yen softened in the session following the BOJ summary's release, according to Finnhub and Bloomberg Markets.
USDJPY is the primary currency pair directly affected, reflecting the relative shift in Japan's monetary policy expectations against the US dollar. The Nikkei 225 (^N225) rose in the same session, with the index's movement directly connected to yen depreciation reducing the relative cost of Japanese exports and lifting equity valuations in yen terms, as reported by Finnhub.
Japan's Prime Minister separately announced government policies aimed at restoring confidence in the yen, citing limited results from previous intervention efforts, according to Cnbc TOP and Finnhub. The statement followed the BOJ summary's release and represented an official government response to ongoing depreciation pressure on the currency.
Sources: investinglive.com, Cnbc TOP, CNBC, Bloomberg Markets