BOJ Rate Hike Looms: Nikkei 225 Faces Dual Pressure from Rising Rates and a Firming Yen

The Nikkei 225 index opened at 68,713.8 on August 17, 2026, flat against its prior close.

However, a more significant development is underway with the Bank of Japan (BOJ) potentially raising interest rates as soon as September.

This move would accelerate the BOJ's normalization timeline and could impact the index's recent run.

The tightening signal matters most through the currency channel, where a stronger yen would compress overseas earnings for Japan's major exporters.