The Japanese yen weakened past 160 yen/dollar, prompting warnings of possible drastic measures. UBS forecasts it could reach 175 yen/dollar if the global economy enters a state of stagflation.
April 2, 2569 at 07.28:XNUMX, Bloomberg reported that Strategist from UBS Group AG. I think that The yen is likely to continue weakening, despite increased signals from Japanese officials regarding currency intervention. It is anticipated that in the event of prolonged turmoil, the dollar-yen exchange rate could reach 175 yen per dollar by the end of 2569.
Analyst specify that If oil prices rise close to $150 per barrel, using currency intervention to control inflation might only create a new price level that makes the market sell the yen more. While Japan needs to use a large amount of international reserves, it cannot effectively alter the direction of its currency.
UBS specify that The Japanese government may need to use fiscal policies, such as energy subsidies, instead of intervening in the currency market to control inflation.
In such a scenario, the market may perceive that Japanese policymakers are not serious about halting the yen's depreciation amidst the risk of stagflation in the global economy, which would further strengthen the dollar and weaken the yen.
This forecast comes after the dollar-yen exchange rate surpassed 160 yen per dollar for the first time since 2024, prompting Japanese officials to issue stronger warnings.
Atsushi Mimura, a currency inspector at Japan. Warning that Drastic measures may be necessary.
Bank of Japan Governor Kazuo Ueda specify that Currency exchange rates are a key factor in determining monetary policy.
Finance Minister Satsuki Katayama This signals that the government is prepared to respond if the yen weakens too much, reflecting the Japanese government's growing concern over the depreciation of the yen.
refer : www.bloomberg.com
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