HSBC: The decline in the US dollar against the Japanese yen may not be sustainable.

Joey Chew of HSBC stated in a research report that the US dollar against the Japanese yen may not continue to decline. The head of Asian foreign exchange research at HSBC said that the economic research department at HSBC expects the Bank of Japan to only raise interest rates one more time. However, Chew also mentioned that in the short term, the US dollar against the Japanese yen exchange rate may be limited by intervention risks and ultimately pressured by falling oil prices. Chew added, "Policy actions that fundamentally improve the outlook for the yen include: the Bank of Japan taking a slightly tight monetary stance to pave the way for positive real interest rates, commitment to fiscal discipline, and measures to improve the balance of foreign exchange supply and demand through capital flows." HSBC's forecast for the end of 2026 for the US dollar against the Japanese yen exchange rate is 155. Data from the London Stock Exchange Group shows that the US dollar is currently at 157.25 yen.