USD/JPY to fall below 140 by the end of the year (MUFG)

Mitsubishi UFJ Morgan Stanley Securities strategists suggest in a research note that the dollar might drop below 140 yen by the end of 2025. Citing the interest-rate difference between the US and Japan as likely to shrink further

• predicts that the Federal Reserve will lower interest rates to a range of 3.75% to 4% by late 2025
• and that the Bank of Japan is expected to increase its policy rate target to 0.75% in the last quarter of the year

JPY flexing

This article was written by Eamonn Sheridan at www.forexlive.com.