Robert J. Williams 
The US dollar’s recent decline paused on Thursday, 22 October 2026, as investors held back ahead of central bank meetings in Japan, the United States and Europe next week, Reuters reported. Sterling, the Australian dollar and the New Zealand dollar stayed relatively firm, while the yen hovered near 158 per dollar.
What Did the Dollar Do on 22 October?
Nothing decisive. The dollar’s pullback stalled instead of reversing, and traders showed little appetite to add new positions before the Bank of Japan (BOJ), the Federal Reserve and the European Central Bank (ECB) each announce a decision within the same week. Reuters first reported the move at 02:46 GMT.
The pattern across the majors was uneven:
| Currency | Behavior on 22 October |
|---|---|
| Sterling (GBP) | Relatively firm against the dollar |
| Australian dollar (AUD) | Relatively firm |
| New Zealand dollar (NZD) | Relatively firm |
| Japanese yen (JPY) | Near 158 per dollar; intervention risk and rate-hike expectations in play |
Source: Reuters, 22 October 2026.
Why Is the Yen Stuck Near 158 per Dollar?
Two pulls are acting on USD/JPY at once. Reuters pointed to the risk that Japanese authorities step into the market to buy yen, and to expectations that the BOJ will raise rates again.
Tokyo has acted before. In September 2022 Japan’s Ministry of Finance bought yen for the first time since 1998, and it intervened again in 2024 with the currency close to 160 per dollar. At about 158, the yen sits roughly two yen short of that second level.
Rate-hike expectations cut the other way. A higher BOJ policy rate narrows the gap with US yields, which is the gap that has kept the yen weak. So the BOJ meeting carries more weight for the yen than the Fed’s does, even though the Fed sets the tone for the dollar side of the pair.
Which Central Banks Meet Next Week?
Three of the biggest: the BOJ, the Fed and the ECB. Reuters did not say which day each one meets or what markets expect from them, and none had announced a decision when this article was published. Check each bank’s published calendar for exact dates.
Traders will be reading for different things at each meeting:
- BOJ: any language on the pace of future rate increases, and whether officials say anything about the yen’s weakness.
- Fed: guidance on the policy path, since the dollar’s recent slide has been tied to the Fed in market commentary.
- ECB: the tone on the euro area, which feeds into EUR/USD, the most traded currency pair.
Analyst Take
A pause this close to three decisions says more about caution than conviction. Firm sterling, Australian and New Zealand dollars show the dollar’s earlier slide hasn’t been undone, but nobody is paying up to extend it before the Fed speaks.
The yen is the cleaner test. A move past 158 puts Tokyo’s patience back in question, and the BOJ meeting is the one event that can pull the other way. If the BOJ sounds firm on hikes, the yen has support. If it doesn’t, expect the intervention talk to get louder.
One flat session doesn’t show where the dollar goes next, and the Reuters report gave no dollar index level to measure the pause against.
Frequently Asked Questions
Why did the dollar stop falling on 22 October?
Investors held back before central bank meetings in Japan, the United States and Europe next week, according to Reuters. With three decisions due close together, few traders wanted to extend dollar bets first.
Why does USD/JPY near 158 matter?
Because Japanese authorities have bought yen when the currency weakened sharply before, including in 2022 and 2024. Reuters said intervention risk and expected BOJ rate hikes were both keeping the yen in focus.
When do the Fed, BOJ and ECB meet?
Next week, per Reuters, which did not give exact dates in its report. Each bank publishes its meeting calendar on its own website, and those pages are the place to confirm timing.
> Disclaimer: This article is for information only and is not financial advice. Currency trading carries a high risk of loss, and losses on margin positions can exceed the amount deposited.
About Author
