As the yen's depreciation and the dollar's appreciation lose momentum in the foreign-exchange market, market views are diverging against the backdrop of comments from the government and the Bank of Japan. Koike Sakura (小池さくら), an analyst at Mitsubishi UFJ Bank, expects the yen to be around ¥154 per dollar at the end of March 2027.
In the current foreign-exchange market, the yen's depreciation and the dollar's appreciation have shown signs of pausing, and yen-selling momentum is reportedly weakening. Comments from senior Japanese and U.S. government officials aimed at curbing yen depreciation have been reported, and market turbulence is gradually subsiding.
Market participants hold differing views on the yen's future direction, and activity could pick up again depending on the outlook for U.S. interest-rate policy and foreign-exchange trends. The yen is currently trading in the ¥157-per-dollar range. Attention is also focused on comments from the Bank of Japan and Japan's financial authorities.
Koike Sakura (小池さくら), an analyst at Mitsubishi UFJ Bank, expects the yen to be around ¥154 per dollar at the end of March 2027. She indicated that, on the way to that level, there may be a period of yen depreciation toward the end of 26 as expectations of an FRB rate hike rise, with the yen potentially testing ¥160 per dollar.