Bank of Japan data showed the yen strengthening modestly against the dollar on Oct. 21, while separate government figures showed Japan’s September goods trade deficit was wider than a year earlier.
The central bank’s published rate for the dollar moved from ¥158.28–¥158.30 earlier in the Tokyo session to ¥158.12–¥158.14 in its late-afternoon reading. The lower dollar-yen rate reflects a stronger yen over that interval.
Japan’s Ministry of Finance reported a provisional, unadjusted goods trade deficit of ¥536.6 billion for September. The gap narrowed from ¥1.11 trillion in August but exceeded the ¥277.7 billion deficit recorded in September 2025. Exports totaled ¥10.97 trillion, up 16.7% from a year earlier, while imports reached ¥11.51 trillion after an 18.9% increase. Petroleum import value rose 51.1% year over year, compared with a 3.1% rise in volume, adding pressure to the import bill.
Reuters and Bloomberg reported that Bank of Japan Deputy Gov. Ryozo Himino told lawmakers underlying inflation was near the central bank’s 2% target and financing conditions remained supportive. Reuters separately reported that the yen showed little immediate response to his remarks.
The Bank of Japan raised its overnight call-rate guideline to around 1.25% at its Sept. 18 meeting, with the change taking effect Sept. 24. Its policy statement said further rate increases would depend on developments in economic activity, prices and financial conditions. The bank also said high crude prices and yen depreciation were adding to price pressures, while higher oil costs could weigh on economic activity.
Japan’s September inflation report is due Oct. 23, according to the Statistics Bureau; earlier EconoTimes coverage noted the report’s timing. The Federal Reserve meets Oct. 27–28, followed by the Bank of Japan on Oct. 29–30.
