What drives the Japanese yen?

A classic safe-haven currency caught between ultra-low rates and intervention threats. Each row traces a chain of real events that pushed the yen higher or lower, month by month.

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MAY 1 – MAY 31, 2026
MAY 21 Closed: −0.03%
🇮🇷 Diplomatic Negotiation Progress 2026-05-21
🌍 Oil Price Decline 2026-05-21
Optimism over Iran peace talks raised hopes of resumed oil flows, pushing prices down.
YEN ▲ 2026-05-21
Oil price decline reduces import costs for Japan, strengthening the yen.
MAY 18 Closed: +0.29%
🇮🇷 Conflict Escalation 2026-05-11
🌍 Energy Price Rise 2026-05-11
Conflict escalation disrupts oil supply, raising energy prices globally.
🇺🇸 Inflation Rise 2026-05-15
Higher energy costs increase production and transportation expenses, pushing up overall prices.
🇺🇸 Interest Rate Rise Expectation 2026-05-18
Rising US inflation leads traders to expect the Fed may raise interest rates.
YEN ▼ 2026-05-18
Expectation of Fed rate hike strengthens dollar, making yen weaker.
MAY 15 Closed: +0.34%
🇮🇷 Conflict Escalation 2026-05-11
🌍 Energy Price Rise 2026-05-11
Conflict escalation disrupts oil supply, raising energy prices globally.
🇺🇸 Inflation Rise 2026-05-15
Higher energy costs increase production and transportation expenses, pushing up overall prices.
YEN ▼ 2026-05-15
Higher US inflation strengthens the dollar, making the yen weaker.
MAY 14 Closed: +0.11%
🇮🇷 Conflict Escalation 2026-05-11
🌍 Energy Price Rise 2026-05-11
Conflict escalation disrupts oil supply, raising energy prices globally.
🇺🇸 Inflation Rise 2026-05-13
Higher fuel costs increase production and transportation expenses, pushing up overall prices.
🇺🇸 Treasury Yield Rise 2026-05-14
Higher inflation makes the Fed more likely to raise rates, so markets expect a hike.
YEN ▼ 2026-05-14
Higher US Treasury yields attract investors, strengthening the dollar and weakening the yen.
MAY 12 Closed: +0.24%
🇺🇸 Peace Proposal Rejection 2026-05-12
🇺🇸 Dollar Strengthening 2026-05-12
Rejection of peace proposal raised geopolitical uncertainty, boosting demand for safe-haven dollar.
YEN ▼ 2026-05-12
A stronger dollar makes the yen weaker because currencies trade in pairs.
🇯🇵 Interest Rate Rise Expectation 2026-05-18
A weaker yen increases import costs and inflation, prompting expectations of a rate hike.

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MAY 6 Closed: +0.31%
🇯🇵 Intervention Speculation 2026-05-06
YEN ▲ 2026-05-06
Speculation of Japanese intervention made the yen stronger by boosting confidence.
🇺🇸 War De-Escalation 2026-05-06
🌍 Oil Price Decline 2026-05-06
De-escalation reduced supply disruption fears, causing oil prices to ease.
YEN ▲ 2026-05-06
Oil price decline reduces Japan's import costs, strengthening the yen.
MAY 1 Closed: −2.0%
🇯🇵 Currency Intervention 2026-05-01
YEN ▲ 2026-05-01
Japan intervened in the currency market, causing the yen to strengthen sharply against the dollar.
APR 1 – APR 30, 2026
APR 30 Closed: +0.37%
🇯🇵 Central Bank Intervention 2026-04-30
YEN ▲ 2026-04-30
Central bank intervention strengthens the yen by increasing demand for the currency.
APR 28 Closed: −0.13%
🇮🇷 Military Strike 2026-04-23
🌍 Oil Price Rise 2026-04-23
The Iran war lifted fuel costs, increasing global fuel prices.
🇯🇵 Inflation Expectation Rise 2026-04-28
Higher crude oil prices increase energy and goods costs, pushing inflation forecasts up.
🇯🇵 Interest Rate Hold 2026-04-28
Higher inflation outlook makes the BOJ more likely to raise rates, but they held steady this time.
YEN ▲ 2026-04-28
The BOJ kept rates unchanged but signaled future hikes, boosting yen demand.
🇯🇵 Interest Rate Decision 2026-04-28
YEN ▲ 2026-04-28
The BOJ kept rates unchanged, which was expected, and the yen strengthened.
APR 27 Closed: −0.14%
🇺🇸 Vessel Seizure 2026-04-20
🇮🇷 Military Strike 2026-04-20
The US seized an Iranian vessel, so Iran retaliated with drone strikes.
🌍 Oil Price Rise 2026-04-23
The Iran war lifted fuel costs, increasing global fuel prices.
YEN ▼ 2026-04-27
Surging oil prices weaken the yen by increasing import costs and trade deficit.
APR 24 Closed: +0.16%
🇺🇸 Military Strike 2026-04-24
🌍 Energy Price Rise 2026-04-24
Military strike threats and blockades disrupt oil supply, pushing energy prices higher.
YEN ▼ 2026-04-24
Higher energy costs hurt Japan's trade balance, weakening the yen.
APR 23 Closed: +0.07%
🇯🇵 Interest Rate Hold 2026-04-23
YEN ▼ 2026-04-23
The Bank of Japan kept rates unchanged, disappointing markets expecting a hike, weakening the yen.
🇯🇵 Input Cost Inflation Rise 2026-04-23
A weaker yen makes imported raw materials, fuel, and energy more expensive, raising costs for Japanese businesses.

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APR 21 Closed: −0.2%
🕌 War De-Escalation 2026-04-17
🌍 Oil Price Decline 2026-04-17
Military de-escalation in the Middle East reduced supply disruption fears, causing oil prices to fall.
YEN ▲ 2026-04-21
Lower oil prices reduce Japan's import costs, making the yen more valuable.
🇯🇵 Interest Rate Uncertainty 2026-04-21
YEN ▼ 2026-04-21
Uncertainty about future interest rate hikes makes the yen less attractive to investors.
🇯🇵 Input Cost Inflation Rise 2026-04-23
A weaker yen makes imported raw materials, fuel, and energy more expensive, raising costs for Japanese businesses.
APR 17 Closed: +0.24%
🇯🇵 Central Bank Communication 2026-04-17
YEN ▼ 2026-04-17
The central bank governor's unclear remarks on interest rates caused the yen to weaken against the dollar.
🇯🇵 Input Cost Inflation Rise 2026-04-23
A weaker yen makes imported raw materials, fuel, and energy more expensive, raising costs for Japanese businesses.
APR 16 Closed: +0.01%
🇺🇸 Diplomatic Negotiation Progress 2026-04-14
🇺🇸 Dollar Decline 2026-04-14
Optimism about US-Iran negotiations reduces safe-haven demand for the dollar.
YEN ▲ 2026-04-16
A weaker US dollar and softer oil prices made the Japanese yen more valuable relative to other currencies.
🇯🇵 Currency Intervention Expectation 2026-04-16
YEN ▲ 2026-04-16
Expectations that authorities might intervene to support the yen caused the currency to strengthen.

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