Pulais: The short-term rise of the yen may have come to an end

Prudential stated that the short-term upward trend of the yen may have ended, mainly because the interest rate differential between the US and Japan remains a key factor in the USD/JPY exchange rate. The Federal Reserve has maintained the benchmark interest rate in the range of 4.25% to 4.5%, and market expectations for US economic growth have been downgraded, with growth expected to be below 2% this year. Despite the slowdown in US economic growth, Prudential believes that a recession will not occur, and the market needs to reassess interest rate expectations. Local Japanese yields are rising, the financial environment is tightening, and the yen's sensitivity to external factors is increasing