USDJPY Surges to New High Amid US Rate Hike Expectations

The USDJPY currency pair surged to 155.0 on September 15, 2026, as investors anticipated a rate hike from the Federal Reserve. This move underscores the divergence in monetary policy between the US and Japan, which is exacerbated by Japan's reliance on imported energy.

The Fed is widely expected to raise interest rates by 25 basis points today, lifting the federal funds rate target range to 3.75% to 4.00%. This hawkish tilt from the US central bank is a response to stubbornly high inflation, which rose 0.4% month-on-month and 3.4% year-on-year in August.

The anticipation of tighter U.S. monetary policy has sent the 10-year U.S. Treasury yield soaring to 5.02%, making dollar-denominated assets more attractive. This dynamic is driving the carry trade, where investors borrow low-yielding yen to invest in higher-yielding dollars.