State Street strategist: The yen may fluctuate in the short term, with 135–140 still being the key range in the medium to long term

Masahiko Loo, a senior fixed income strategist at State Street Global Advisors, pointed out that although the Bank of Japan did not raise interest rates at this meeting, if it takes action to raise rates in the future, the market may interpret it as a "dovish rate hike," which could trigger short-term fluctuations in the yen. Masahiko Loo analyzed that even if such fluctuations occur, the yen's exchange rate against the US dollar will still be supported in the medium to long term by two factors: first, the expectation of the Federal Reserve shifting to a loose monetary policy is strengthening; second, Japanese investors are gradually increasing their foreign exchange hedging ratio from historically low levels. Based on this, he maintains his long-term target judgment for the USD/JPY exchange rate in the range of 135–140. (Xinhua Finance)