Reported 9 months ago
Following the Japanese yen hitting a 38-year low against the US dollar on June 27, 2024, affecting the overall Asian currency trend, Taiwan Shin Kong Chief Economist Lee Chen-yu analyzed three key factors. He mentioned that if the US starts cutting interest rates in the second half of the year, the US dollar bullish trend weakens, the yen will strengthen, with a potential to return to around 157 yen. Other factors include the outcome of Macron's election in July stabilizing the euro and bringing the yen back to 155, and the domestic political struggles in Japan affecting the yen's performance. The yen's future is dependent on US PCE data and Macron's election results, with scenarios ranging from yen strengthening to further decline if certain conditions are met. The overall Asian currency depreciation remains uncertain with potential influences from US elections and China's policy decisions.
Source: YAHOO