Reported 8 months ago
The Japanese yen's exchange rate with the US dollar continues to decline, with some institutions predicting a low of 170. Despite the government's willingness to intervene if necessary, institutions like Sumitomo Mitsui DS Asset Management and Mizuho Bank believe the yen will not only drop below 160 but could further decline to 170. Analysts attribute the yen's weakness to the interest rate gap between Japan and other major economies like the US and Europe. Even with the government's readiness to intervene, traders and financial institutions remain bearish, with asset management companies betting heavily on further yen devaluation. The market sentiment towards the yen remains negative, with little optimism for a turnaround in the near future.
Source: YAHOO