MUFG: The yen is unlikely to strengthen in the absence of catalysts.

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Jinse Finance reports that on July 7, Lee Hardman of MUFG Bank said in a report that investors' increasing bets on the yen's weakening highlight the currency's potential to rebound when the situation reverses, but this seems unlikely in the near term. "There is no clear catalyst at present to trigger yen strength." After the Japanese government announced a new multi-year investment framework, investors' unease over fiscal policy has increased. He said this adds pressure on the yen, which had already been hit by rising energy prices and recent hints from the Federal Reserve that interest rates could rise. Further intervention measures by Japanese authorities to support the yen may not reverse its weakening trend.
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