Bank of America: BOA Expects YEN to Depreciate Further, but Government Intervention is Unlikely

Strategists including Bank of America Adarsh Sinha said low volatility and wide interest rate differentials could weigh on the yen throughout the summer.
“The downside risk of the yen in 2024 cannot be ignored, and the US and Japan are expected to hit 147.00 by September (this year).” The strategists wrote in a report.
However, the Japanese government may not intervene unless the U.S. and Japan rise sharply and break the 150 mark.
And the cost-benefit balance of a weaker yen has improved due to lower oil prices and the reopening of inbound tourism, which could also reduce the political cost of a weaker yen.
In addition, strategists believe the Bank of Japan could adjust its yield curve control (YCC) policy as early as its July policy meeting.