Pressure for the yen to weaken has intensified in the foreign exchange market, and the dollar reached the ¥160 level for the first time since the coordinated Japan-U.S. intervention, prompted by remarks from Federal Reserve Chair Warsh. Mochizuki Risa (望月里彩), a junior analyst at SMBC Nikko Securities, expects the yen to trade at around ¥155–¥160 per dollar at the end of 2026.
Pressure for the yen to weaken is building again in the foreign exchange market. Following remarks by Federal Reserve Chair Warsh that were seen as supportive of higher interest rates, the yen reached the ¥160 level against the dollar for the first time since the coordinated Japan-U.S. yen-buying intervention. We asked junior analyst Mochizuki Risa (望月里彩) for her outlook.
The yen is expected to trade at around ¥155–¥160 per dollar at the end of 2026. A sharp decline in the yen below ¥160 is not anticipated, although developments in the Middle East will also need to be monitored.