UBS Warns Yen Rally May Be Short-Lived Amid US-Japan Policy Divide

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

The bank's analysts pointed out that while the BOJ is expected to maintain its dovish stance, the Fed is likely to continue raising interest rates in response to inflationary pressures.

This divergence could lead to a stronger yen as investors seek safe-haven assets, but UBS notes that the yen's recent appreciation may be unsustainable.