Mitsubishi UFJ: Japan’s investment plan is unlikely to have a lasting impact on the yen

Jinse Finance reported on July 10 that Mitsubishi UFJ Bank analyst Derek Halpenny said in a report that, after Japan’s Finance Minister Kayetsuki Koyama called on households and pension funds to increase investments in domestic assets, the yen’s upward trend is unlikely to continue in the short term. While this is positive, these policy shifts need time. It is still too early to expect any lasting impact on the yen. Concerns about the credibility of the Bank of Japan and worries that it has fallen behind the curve on rate hikes remain key. The market may also interpret Kayetsuki Koyama’s remarks as signs that willingness to support yen intervention is decreasing; if global yields rise, this could lead to the yen weakening again. (Jin Shi)
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