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Yen rebound ripples across global markets

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Yen rebound ripples across global markets

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A dramatic rebound in the yen has sent shockwaves across global markets and left the currency on course for its best month this year, setting the scene for further volatility around Japanese and US central bank meetings this week.

The yen has leapt 4.7 per cent against the dollar in July, helped by the possibility that the Bank of Japan could raise interest rates on Wednesday, narrowing the yawning gap with Federal Reserve borrowing costs that had driven the currency to a string of multi-decade lows. Expectations of Fed cuts have also ramped up following a fall in US inflation earlier this month.

The currency’s recovery has been turbocharged by the unwind of popular “carry trades”, where investors borrowed in yen to fund the purchase of higher yielding currencies and had pushed bets against the yen to their most extreme levels for around two decades. 

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Analysts say that as investors have rushed to cut their losses on misfiring carry trades, they have been forced to sell assets in other corners of markets, adding fuel to a sharp sell-off in global tech stocks.

“The FX market is moving everything right now, because yen-funded carry trades have been one of the most popular trades this year — cutting the positions is affecting other risk positions as well,” said Athanasios Vamvakidis, global head of foreign exchange at Bank of America. 

While the yen stabilised on Friday, forex traders say volatility will intensify next week as markets prepare for a knife-edge interest rate decision by the Bank of Japan and adjust to a global shift in risk appetite and the massive unwinding of speculative currency positions. 

The predictions, made by traders in Tokyo at three investment banks, came at the end of a week in which the yen surged from ¥157.5 against the dollar to ¥153.71.

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But traders also warned that a BoJ decision on Wednesday to leave interest rates untouched could trigger a rapid reversal for the yen, sending it back on course towards the ¥161 per dollar low at which the Japanese authorities are suspected of having intervened in mid-July.

“Things really could get interesting next week for the yen, because the set-up going into the BOJ meeting is very different given that market sentiment towards the carry trade has clearly changed,” said Benjamin Shatil, FX strategist at JPMorgan in Tokyo.

“There are still a lot of short yen positions out there, which could be unwound if we get a move through 152. At the same time, if the BOJ refrains from making any substantial announcement, there might be very little resistance to the yen falling back,” he added.

Traders in swaps markets are evenly split on the prospect of the Bank of Japan lifting its key rate 0.15 percentage points to 0.25 per cent next week, up from a probability of a quarter earlier this month. 

Looming over this has been the influence from the US political scene, including comments by Donald Trump that the US had a “big currency problem” because of the weakness of yen and yuan, signalling he might explore different options for weakening the dollar if he wins the presidential election in November. 

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That has played alongside the heavy sell-off on Wall Street led by tech shares.  

“The most crowded fund manager trade had been long tech stocks and in FX it’s been short yen . . . this week has seen the most crowded trades unwind and I’m sure there was some cross over between the two,” said Chris Turner, global head of research at ING.

BoJ-watchers believe that the currency moves have placed the central bank in a difficult position, as the current economic situation appears to justify a small rate increase. If the BoJ decides not to move, said analysts, the market may decide that it has held back because the yen is now stronger, allowing the market to interpret the decision as purely reactive.

“Over the last two years people have made a lot of money shorting yen . . . there will be a bias to jump back in if the BoJ doesn’t lift rates,” said Turner.

Additional reporting by Kate Duguid in New York

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Rep. Ilhan Omar rushed by man on stage and sprayed with liquid at town hall event

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Rep. Ilhan Omar rushed by man on stage and sprayed with liquid at town hall event

A man is tackled after spraying an unknown substance at US Representative Ilhan Omar (D-MN) (L) during a town hall she was hosting in Minneapolis, Minnesota, on January 27, 2026. (Photo by Octavio JONES / AFP via Getty Images)

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Rep. Ilhan Omar, D-Minn., was rushed by a man during a town hall event Tuesday night and sprayed with a liquid via a syringe.

Footage from the event shows a man approaching Omar at her lectern as she is delivering remarks and spraying an unknown substance in her direction, before swiftly being tackled by security. Omar called on Homeland Security Secretary Kristi Noem to resign or face impeachment immediately before the assault.

Noem has faced criticism from lawmakers on both sides of the aisle in the aftermath of the fatal shooting of 37-year-old intensive care nurse Alex Pretti by federal officers in Minneapolis Saturday.

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Omar’s staff can be heard urging her to step away and get “checked out,” with others nearby saying the substance smelled bad.

“We will continue,” Omar responded. “These f******* a**holes are not going to get away with it.”

A statement from Omar’s office released after the event said the individual who approached and sprayed the congresswoman is now in custody.

“The Congresswoman is okay,” the statement read. “She continued with her town hall because she doesn’t let bullies win.”

A syringe lays on the ground after a man, left, approached Representative Ilhan Omar, a Democrat from Minnesota, during a town hall event in Minneapolis, Minnesota, US, on Tuesday, Jan. 27, 2026. The man was apprehended after spraying unknown substance according the to Associated Press. Photographer: Angelina Katsanis/Bloomberg via Getty Images

A syringe lays on the ground after a man, left, approached Representative Ilhan Omar, a Democrat from Minnesota, during a town hall event in Minneapolis, Minnesota, US, on Tuesday, Jan. 27, 2026. The man was apprehended after spraying an unknown substance according to the Associated Press. Photographer: Angelina Katsanis/Bloomberg via Getty Images

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Omar followed up with a statement on social media saying she will not be intimidated.

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As Omar continued her remarks at the town hall, she said: “We are Minnesota strong and we will stay resilient in the face of whatever they might throw at us.”

Just three days ago, fellow Democrat Rep. Maxwell Frost of Florida said he was assaulted at the Sundance Festival by a man “who told me that Trump was going to deport me before he punched me in the face.”

Threats against Congressional lawmakers have been rising. Last year, there was an increase in security funding in the wake of growing concerns about political violence in the country.

According to the U.S. Capitol Police, the number of threat assessment cases has increased for the third year in a row. In 2025, the USCP investigated 14,938 “concerning statements, behaviors, and communications” directed towards congressional lawmakers, their families and staff. That figure represents a nearly 58% increase from 2024.

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Video: F.A.A. Ignored Safety Concerns Prior to Collision Over Potomac, N.T.S.B. Says

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Video: F.A.A. Ignored Safety Concerns Prior to Collision Over Potomac, N.T.S.B. Says

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F.A.A. Ignored Safety Concerns Prior to Collision Over Potomac, N.T.S.B. Says

The National Transportation Safety Board said that a “multitude of errors” led to the collision between a military helicopter and a commercial jet, killing 67 people last January.

“I imagine there will be some difficult moments today for all of us as we try to provide answers to how a multitude of errors led to this tragedy.” “We have an entire tower who took it upon themselves to try to raise concerns over and over and over and over again, only to get squashed by management and everybody above them within F.A.A. Were they set up for failure?” “They were not adequately prepared to do the jobs they were assigned to do.”

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The National Transportation Safety Board said that a “multitude of errors” led to the collision between a military helicopter and a commercial jet, killing 67 people last January.

By Meg Felling

January 27, 2026

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Families of killed men file first U.S. federal lawsuit over drug boat strikes

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Families of killed men file first U.S. federal lawsuit over drug boat strikes

President Trump speaks as U.S. Secretary of Defense Pete Hegseth looks on during a meeting of his Cabinet at the White House in December 2025.

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Relatives of two Trinidadian men killed in an airstrike last October are suing the U.S. government for wrongful death and for carrying out extrajudicial killings.

The case, filed in Massachusetts, is the first lawsuit over the strikes to land in a U.S. federal court since the Trump administration launched a campaign to target vessels off the coast of Venezuela. The American government has carried out three dozen such strikes since September, killing more than 100 people.

Among them are Chad Joseph, 26, and Rishi Samaroo, 41, who relatives say died in what President Trump described as “a lethal kinetic strike” on Oct. 14, 2025. The president posted a short video that day on social media that shows a missile targeting a ship, which erupts in flame.

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“This is killing for sport, it’s killing for theater and it’s utterly lawless,” said Baher Azmy, legal director of the Center for Constitutional Rights. “We need a court of law to rein in this administration and provide some accountability to the families.”

The White House and Pentagon justify the strikes as part of a broader push to stop the flow of illegal drugs into the U.S. The Pentagon declined to comment on the lawsuit, saying it doesn’t comment on ongoing litigation.

But the new lawsuit described Joseph and Samaroo as fishermen doing farm work in Venezuela, with no ties to the drug trade. Court papers said they were headed home to family members when the strike occurred and now are presumed dead.

Neither man “presented a concrete, specific, and imminent threat of death or serious physical injury to the United States or anyone at all, and means other than lethal force could have reasonably been employed to neutralize any lesser threat,” according to the lawsuit.

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Lenore Burnley, the mother of Chad Joseph, and Sallycar Korasingh, the sister of Rishi Samaroo, are the plaintiffs in the case.

Their court papers allege violations of the Death on the High Seas Act, a 1920 law that makes the U.S. government liable if its agents engage in negligence that results in wrongful death more than 3 miles off American shores. A second claim alleges violations of the Alien Tort Statute, which allows foreign citizens to sue over human rights violations such as deaths that occurred outside an armed conflict, with no judicial process.

The American Civil Liberties Union, the Center for Constitutional Rights, and Jonathan Hafetz at Seton Hall University School of Law are representing the plaintiffs.

“In seeking justice for the senseless killing of their loved ones, our clients are bravely demanding accountability for their devastating losses and standing up against the administration’s assault on the rule of law,” said Brett Max Kaufman, senior counsel at the ACLU.

U.S. lawmakers have raised questions about the legal basis for the strikes for months but the administration has persisted.

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—NPR’s Quil Lawrence contributed to this report.

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