Rabobank: With BOJ rate hike expectations and the return of fiscal discipline, the yen is expected to strengthen to 145
According to Odaily, Rabobank strategist Jane Foley pointed out that Japanese Prime Minister Sanae Takaichi has pledged to implement a responsible fiscal policy, and the Bank of Japan may further raise interest rates, which should strengthen the yen. Foley stated that Takaichi's recent victory in the early general election allowed her to distance herself from the major opposition party's more accommodative fiscal stance, which had sparked debate during the campaign. "Another reassuring factor is Japan's vast domestic savings." With the Bank of Japan possibly raising rates again this year, Foley expects the USD/JPY exchange rate to fall from the current 153.23 to the 145 level within 12 months. (Golden Ten Data)
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