A Citi strategist said in a report that Bank of Japan tightening and rising
Japanese yields mean the yen’s long-term trend may have shifted toward
appreciation. The report flagged a marked change in Sanae Takaichi’s policy
stance—previously oriented toward inflation-boosting measures that tended to
weaken the currency—now appearing less supportive of yen weakness. Citi said
Japan’s policy has moved from endorsing post-Abenomics yen weakness to
supporting yen strength, and that US policy has likewise shifted from limiting
excessive yen weakness to guide yen appreciation.
