Why Japanese Yen (JPY) fell 1.07%
Japanese Yen (JPY) fell 1.07% on September 25, 2026 — Month-end flows fuel yen selling pressure.
What happened
Month-end foreign exchange flows favored dollar and euro buying over yen and pound selling, as noted by BofA's flow analysis.
Why it moved
Quarter- or month-end rebalancing typically sees yen liquidation as portfolios reduce safe-haven hedges and reallocate into higher-yielding or growth-linked assets; this structural selling pressure weakens USD/JPY.
Why it matters
Part of the Japan (Yen & Equities) theme; yen weakness aligns with the equity rally, as lower rates and weaker currency support exporter margins and capital repatriation.
What would break the thesis
If risk sentiment deteriorates sharply or Bank of Japan signals imminent tightening, month-end flows could reverse and safe-haven demand could push yen higher again.
Sources
- Month-end FX flows point to yen and pound selling, euro buying – BofA — ForexLive
- investingLive Americas FX news wrap 24 Sept: USD and Treasury yields climb as Iran headlines lift stocks off their lows — ForexLive
- Morning Kickstart: Dollar rises as global bond yields pressure stocks ahead of Trump–Xi talks — ForexLive