Why is the yen so strong at the beginning of the year? In addition to interest rate hikes, there are also expectations for "Plaza Accord 2.0."

Since 2025, the Japanese yen has risen about 3% against the US dollar, becoming the best-performing currency among G10 currencies. UBS analysts point out that the strong yen is attributed to rising Japanese interest rates and increasing market expectations for a "Plaza Accord 2.0." The yield on Japan's 10-year government bonds has reached its highest level since 2011, supporting the yen's appreciation due to the Japan-US interest rate differential. Additionally, the market has high hopes for a potential "Plaza Accord 2.0," believing that Japan may be the preferred target. Investment should be approached with caution, and this article does not constitute personal investment advice