Mitsui Sumitomo Says Fiscal Discipline and Rate Hikes Can Curb Yen Depreciation

Masahiro Ichikawa, a strategist at Mitsui Sumitomo DS Asset Management, stated that if the Japanese government demonstrates a commitment to fiscal discipline and maintains an appropriate pace of interest rate hikes, it can curb further depreciation of the yen without the need for frequent intervention in the exchange rate. He pointed out that while government intervention typically struggles to change market trends, recent interventions have been effective in successfully halting the rapid and disorderly decline of the yen against the dollar, which was approaching the 164 mark.

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