Yen Unlikely to Repeat Summer Surge as US Rates Stay High

UBS wealth management chief investment officer Daiju Aoki says the yen is unlikely to repeat its sharp appreciation in summer 2024, citing persistently high U.S. interest rates and continued structural pressure on Japan's currency.

The dollar has remained around 155-157 yen for now, with Aoki viewing this phase as an attractive entry point into the dollar.

Aoki notes that coordinated currency intervention alone is generally unable to reverse a lasting exchange-rate trend unless accompanied by changes in monetary policy or the broader economy.