UBS Holds Firm on Neutral Yen Forecast Amid Fed-BOJ Policy Divergence

UBS has maintained its neutral stance on the Japanese yen despite the divergence in monetary policies between the US Federal Reserve and the Bank of Japan.

The bank cited concerns about the BOJ's accommodative monetary policy, which is seen as a hindrance to yen appreciation.

This stance may come as a surprise given the Fed's more hawkish approach, but UBS notes that the BOJ's continued easing measures have kept the yen from benefiting from the dollar's strength.