2023-2024 Exchange Rate Forecasts From MUFG
Japanese Yen: Long-Term Pressure for Yen Gains
As far as the yen is concerned, the Bank of Japan has continued to resist policy tightening, but MUFG suspects that the position could change very quickly.
It notes; “We suspect the BoJ could pivot quickly and alter YCC without much warning.”
The bank also expects that the underlying inflation profile has increased which could have important implications for the central bank and yen.
It adds; “The sense that this time could be different is certainly building in Japan.”
An eventual policy shift is expected to boost the heavily-undervalued yen.
Japanese Yen: Long-Term Pressure for Yen Gains
As far as the yen is concerned, the Bank of Japan has continued to resist policy tightening, but MUFG suspects that the position could change very quickly.
It notes; “We suspect the BoJ could pivot quickly and alter YCC without much warning.”
The bank also expects that the underlying inflation profile has increased which could have important implications for the central bank and yen.
It adds; “The sense that this time could be different is certainly building in Japan.”
An eventual policy shift is expected to boost the heavily-undervalued yen.