Mohamed El-Erian, Chief Economic Advisor at Allianz, stated that the yen’s exchange rate falling again to 160 yen to 1 US dollar will inevitably heighten market speculation about possible intervention by the Japanese authorities in the foreign exchange market. Currently, the tug-of-war between the Bank of Japan and market expectations is ongoing. The continued weakening of the yen will, on one hand, raise the prices of imported goods in Japan and increase imported inflationary pressures. On the

Allianz Chief Economic Advisor Mohamed El-Erian stated that the yen exchange rate has once again fallen to the level of 1 US dollar to 160 yen, which will inevitably increase market speculation about potential intervention by Japanese authorities in the foreign exchange market. The ongoing game between the Bank of Japan and market expectations persists. On one hand, the continued depreciation of the yen will drive up domestic prices for imported goods and intensify inflationary pressures. On the other hand, it will further increase the uncertainty of cross-border capital flows. The future direction of the foreign exchange market and Japanese authorities' policy actions will be closely watched by global investors.