In the September survey of FX experts, the most common view was that the BOJ policy rate would be roughly evenly split between 1.25% and 1.50% by the end of 2026, while the yen is expected to weaken to around ¥154 per dollar by year-end.
In the September survey of FX experts, the most common view was that the BOJ policy rate would remain roughly evenly split between 1.25% and 1.50% through the end of 2026.
While some expect yen depreciation to be limited around monetary policy meetings in Japan and the United States, sharp fluctuations are also seen as possible before and after the extended holiday period. The exchange-rate outlook is therefore being closely watched.
The year-end outlook for the yen is for it to weaken to around ¥154 per dollar, with some expecting an acceleration in the pace of rate hikes to affect the exchange rate.