{"id":71934,"date":"2026-09-17T22:38:14","date_gmt":"2026-09-18T02:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-boj-eyes-rate-hike-amid-hormuz-crisis-and-yuan-surge\/71934\/"},"modified":"2026-09-17T22:38:14","modified_gmt":"2026-09-18T02:38:14","slug":"global-markets-update-boj-eyes-rate-hike-amid-hormuz-crisis-and-yuan-surge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-update-boj-eyes-rate-hike-amid-hormuz-crisis-and-yuan-surge\/71934\/","title":{"rendered":"Global Markets Update: BOJ Eyes Rate Hike Amid Hormuz Crisis and Yuan Surge"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Bank of Japan (BOJ)<\/strong> is widely expected to raise interest rates to <strong>1.25%<\/strong> today, the highest level in over 30 years, as global inflation risks intensify due to Middle East conflict.<\/li>\n<li><strong>Strait of Hormuz<\/strong> commodity traffic plummeted to just <strong>four vessels<\/strong> on Thursday, significantly below the 10-day average of 16, as regional war risks disrupt global energy supplies.<\/li>\n<li><strong>Offshore Yuan (CNH)<\/strong> surged to its strongest level against the dollar since <strong>July 2022<\/strong>, breaking past the <strong>6.70<\/strong> threshold amid resilient export demand and policy support.<\/li>\n<li><strong>Waymo<\/strong> (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) announced plans to launch commercial robotaxi operations in <strong>Singapore by 2028<\/strong>, marking its first expansion into Southeast Asia.<\/li>\n<li><strong>South Korea President Lee<\/strong> ruled out military deployment to the Middle East war but signaled readiness for a role in potential <strong>U.S.-North Korea<\/strong> talks.<\/li>\n<\/ul>\n<h2>Central Bank Action and Currency Surges<\/h2>\n<p>The <strong>Bank of Japan (BOJ)<\/strong> is set to conclude its two-day policy meeting today with a likely rate hike to <strong>1.25%<\/strong> from the current <strong>1.00%<\/strong>. This move follows growing pressure from rising inflation risks and a recent <strong>U.S.-Japan<\/strong> coordinated intervention to stabilize the yen. Analysts note that with <strong>Japan&#39;s CPI<\/strong> nearing its 2% target and wages rising, the central bank is moving toward a &quot;neutral&quot; policy stance to avoid falling behind the inflation curve.<\/p>\n<p>In currency markets, the <strong>offshore yuan<\/strong> reached a multi-year peak, trading near <strong>6.6968<\/strong> per U.S. dollar. The rally is being driven by strong export-related conversions and a weakening greenback as markets anticipate a more cautious path for the <strong>Federal Reserve<\/strong>. The <strong>People&#39;s Bank of China (PBOC)<\/strong> has signaled its acceptance of a gradually appreciating currency through consistently stronger daily midpoint fixes.<\/p>\n<h2>Middle East Conflict and Energy Security<\/h2>\n<p>Shipping activity through the <strong>Strait of Hormuz<\/strong> has reached a critical low, with only <strong>four commodity vessels<\/strong> recorded transiting the waterway on Thursday. This sharp decline from the 10-day average of <strong>16-17 vessels<\/strong> comes as the conflict in the region intensifies, pushing <strong>Brent crude<\/strong> prices toward the <strong>$100<\/strong> mark. The disruption has forced global shippers to seek &quot;dark routes&quot; or alternative infrastructure, though damage to key pipelines has limited these options.<\/p>\n<p><strong>South Korea President Lee Jae-myung<\/strong> addressed these concerns on Friday, stating that while South Korea will not deploy forces to join the war, it may take &quot;limited action&quot; to protect its economic interests. The government is currently reviewing the deployment of maritime patrol aircraft and logistics ships to safeguard navigation without engaging in direct combat.<\/p>\n<h2>Geopolitical Diplomacy and Tech Expansion<\/h2>\n<p>On the diplomatic front, <strong>President Lee<\/strong> emphasized that South Korea must have a central role in any future <strong>U.S.-North Korea<\/strong> negotiations. While acknowledging that talks between <strong>Donald Trump<\/strong> and <strong>Kim Jong-un<\/strong> may be difficult to realize, he noted they remain vital for stability on the Korean Peninsula. Lee\u2019s administration continues to push for a formal end to the Korean War despite ongoing military tensions and North Korea&#39;s deepening ties with Russia.<\/p>\n<p>In technology news, Waymo (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) is accelerating its international footprint with a planned <strong>2028 launch<\/strong> in <strong>Singapore<\/strong>. The Alphabet-owned unit will begin testing its <strong>Jaguar I-PACE<\/strong> fleet on local roads in the coming months to map the city-state&#39;s unique monsoon conditions. This expansion follows a similar rollout planned for <strong>Tokyo in 2027<\/strong>, positioning the company as a dominant player in the Asian autonomous mobility market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bank of Japan (BOJ) is widely expected to raise interest rates to 1.25% today, the highest level in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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