Rabicobank: Yen Expected to Strengthen to 145 as BOJ Rate Hike Expectations Combine with Return to Fiscal Discipline

Odaily News Rabobank strategist Jane Foley pointed out that Japanese Prime Minister Sanae Takaichi has committed to implementing responsible fiscal policies, and the Bank of Japan is also likely to raise interest rates further, which should lead to a stronger yen. Foley stated that Takaichi's victory in the recent snap election has allowed her to distance herself from the campaign debates triggered by the more accommodative fiscal stance of the main opposition party. "Another reassuring factor is Japan's substantial domestic savings." With the Bank of Japan potentially raising interest rates further within the year, Foley expects the USD/JPY exchange rate to fall from the current 153.23 to the 145 level within 12 months. (Jin10)