Strategist: The Japanese yen may fall due to political uncertainty

According to a report by Golden Finance, a strategist at Pictet Asset Management stated that there is a risk of depreciation of the Japanese yen against the US dollar. They say that political and economic uncertainty may put pressure on the yen. Last month's senatorial elections in Japan increased the risk of a hung parliament. Due to concerns about a possible increase in public borrowing, government bonds are also under pressure. This may prompt the Bank of Japan to withdraw its quantitative tightening policy, which is unfavorable for the yen. They said that the weakness of the US dollar so far this year is also somewhat excessive, so it should go through a consolidation period. (Golden Ten)