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The yen is likely to strengthen as investors gain a clearer understanding of Prime Minister Sanae Takaichi’s fiscal stance, according to a former Japanese currency czar.
“It wouldn’t be strange at all to see the yen strengthen a little more,” Tatsuo Yamasaki, former vice finance minister for international affairs, said in an interview on Thursday. He also largely ruled out the likelihood of the United States helping Japan with joint currency intervention.
Investors are increasingly recognizing Takaichi’s “responsible” fiscal approach and compared with fundamentals, the currency appears undervalued, he said. Finance Ministry officials have also done a good job at keeping a lid on recent market movements, he added.
