Yen Forecast Revised as Coordinated Intervention Boosts Expectations

Bank of America has revised its forecast for the Japanese yen's performance against the US dollar. The bank now expects the yen to strengthen by around 6% by the end of 2026, following coordinated currency intervention between the US and Japanese governments.

The analysts who made this prediction include Shusuke Yamada, Izumi Devalier, and Tomonobu Yamashita from Bank of America Corp. They attribute the yen's expected advance to joint action from the US and Japanese governments, as well as the prospect of a Bank of Japan rate increase in coming months.

The bank previously forecasted the yen at 152 against the dollar by year-end but now expects it to reach around 149 per dollar.