Dutch cooperative bank: Expectation of Bank of Japan's interest rate hike combined with fiscal discipline returning, yen is expected to strengthen to 145.

Jan Frei, strategist at Rabobank, pointed out that Japanese Prime Minister Sanae Takichi has promised to implement responsible fiscal policies, and the Bank of Japan may further raise interest rates, leading to a stronger yen. Frei said that Takichi's victory in the recent early elections allowed her to remove herself from the debate over a more lenient fiscal stance taken by the main opposition party. "Another reassuring factor is Japan's huge domestic savings." With the Bank of Japan possibly raising interest rates further this year, Frei expects the US dollar to fall from its current level of 153.23 to 145 against the Japanese yen within 12 months.