Next month’s elections in Japan are unlikely to mark the major shift towards yen weakness that many now anticipate. To be clear, in the next 3-5 years the yen probably will fall sharply. After all, the Bank of Japan will surely be one of the last of the world’s major central banks to raise interest rates and Japan’s current account surplus is rapidly diminishing too. But with monetary policy also set to remain easy in the US and Europe for a long while yet, we continue to expect the yen to appreciate again in 2013 on the back of safe haven demand.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services