Societe Generale: Yen's sustained recovery requires better growth prospects

Jinse Finance reported that on July 6, analysts at Societe Generale said in a report that Japanese government departments may further intervene to support the yen, but a sustained recovery of the currency requires improved growth prospects. Japan still has about $1.3 trillion in foreign exchange reserves that can be used to defend the yen, but lower growth expectations should currently limit the currency's gains. However, they said that the strong rally in Japanese stocks suggests the economy may be about to improve. Societe Generale expects the U.S. dollar to fall to 157 against the yen by the end of the year and to 154 by the second quarter of 2027.
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