Archive · 14 Aug 2026
BlackRock's Rieder Says Yen Rebound Hinges on BOJ Hawkishness
The yen is the money used in Japan, and the dollar is the money used in the United States.
Lately, one dollar can buy almost 160 yen, which is one of the weakest the yen has ever been in forty years.
A man named Rick Rieder, who works for a big investment company called BlackRock, says the government alone cannot fix this problem.
He says Japan's central bank, called the Bank of Japan, needs to show it will raise interest rates to make the yen stronger.
Interest rates are like the price of borrowing money, and higher rates can make a currency more valuable.
Japan's rate is only 1 percent, while America's rates are much higher.
The government of Japan's leader, Sanae Takaichi, also wants a rate increase soon, maybe in September or October.
Mr. Rieder thinks the rate might go up in September, but it could be delayed until December.
Making the yen strong again is a tricky job that needs more than quick fixes.
BlackRock's Rick Rieder says a durable yen rebound requires hawkish Bank of Japan signals, not just government intervention.
The yen has edged back toward 160 per dollar this week, near its weakest level in four decades.
Japan's benchmark interest rate is 1%, versus the Federal Reserve's target range of 3.5% to 3.75%.
Japanese Prime Minister Sanae Takaichi's government supports a near-term BOJ hike, likely in September or October.
Rieder expects a September rate increase, though the central bank may delay the decision to December.
- Who
- Rick Rieder, chief investment officer for global fixed income at BlackRock Inc., commenting on the Bank of Japan and the government of Japanese Prime Minister Sanae Takaichi.
- What
- The yen has weakened back toward 160 per dollar, and Rieder says a durable rebound requires hawkish Bank of Japan monetary policy rather than just currency intervention.
- When
- This week, following a Wednesday interview on Bloomberg Television's Wall Street Week; the Bank of Japan's next move is expected in September or October.
- Where
- Japan and global currency markets; the comments aired on Bloomberg Television.
- Why
- Interest-rate differentials favor the dollar, and intervention alone is seen as not durable in supporting the yen.
Intervention-Driven Support
Monetary Policy Fix
How to strengthen the yen
Intervention-Driven Support
US-Japanese efforts to strengthen the yen through currency intervention can push the currency up, as seen at the turn of the month.
Monetary Policy Fix
Intervention is not a durable path; the yen rebound depends on the Bank of Japan turning hawkish and raising rates.
- Yen level
- Near 160 per dollar, approaching its cheapest level in four decades
- Japan benchmark rate
- 1%
- US Federal Reserve target range
- 3.5% to 3.75%
- BOJ's last rate hike
- Quarter-point increase to 1% in June
- Expected next BOJ move
- September or October, per people familiar with the matter
- Rieder's BOJ forecast
- Another increase in September, possibly delayed to December
- Recent intervention result
- US-Japanese efforts at the turn of the month were partially unwound this week