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The Japan Times
Bank of America sees yen jumping 6% by end of 2026
Bank of America has revised its expectations for the yen, now forecasting it to strengthen approximately 6% against the dollar by the end of 2026, moving from ¥158 to around ¥149 per dollar. This expected increase is primarily attributed to recent coordinated intervention between the U.S. and Japanese governments to stabilize the yen. Analysts highlight the influence of possible interest rate hikes from the Bank of Japan as a crucial factor for this anticipated recovery.
MonitorConfidence: MediumMid term horizon
Published 6 Aug 2026, 03:45 UTC2 min read
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Summary
TL;DR
- Bank of America predicts ¥149 per dollar for the yen by end of 2026.
- Recent U.S.-Japan currency intervention supports the yen’s appreciation.
- Analysts suggest that rate hikes from Japan are necessary for continued stability.
- Previous forecasts predicted the yen at ¥152, showcasing a significant revision.
- Coordinated actions raise prospects for long-term currency stability.
Interesting facts
- The yen previously hit a four-decade low near ¥164.
- The last coordinated intervention between the U.S. and Japan was in 1998.
- There may be broader policy responses beyond just currency intervention to support the yen.