The Zhitong Finance App learned that after the Bank of Japan's latest interest rate hike failed to provide a continuous boost to the yen, voices that are bearish on the yen are getting louder and louder, which further strengthens the market view that there is no “quick fix” for the structural weakness of the yen. Strategists at institutions such as J.P. Morgan Chase and BNP Paribas expect that by the end of 2026, the yen may depreciate to 160 yen or even weaker per dollar. Factors driving this judgment include the still huge spread between the US and Japan, negative real interest rates, and continued capital outflows. These institutions believe that as long as the Bank of Japan continues to adopt progressive austerity and the risk of fiscally driven inflation persists, this trend will be difficult to reverse.

The Zhitong Finance App learned that after the Bank of Japan's latest interest rate hike failed to provide a continuous boost to the yen, voices that are bearish on the yen are getting louder and louder, which further strengthens the market view that there is no “quick fix” for the structural weakness of the yen. Strategists at institutions such as J.P. Morgan Chase and BNP Paribas expect that by the end of 2026, the yen may depreciate to 160 yen or even weaker per dollar. Factors driving this judgment include the still huge spread between the US and Japan, negative real interest rates, and continued capital outflows. These institutions believe that as long as the Bank of Japan continues to adopt progressive austerity and the risk of fiscally driven inflation persists, this trend will be difficult to reverse.