三井住友银行：日圆短期贬值压力料持续 中长期美元趋弱

High City Saimi has been elected as Japan's first female Prime Minister. Hirofumi Suzuki, Chief Foreign Exchange Strategist and Head of Research at Sumitomo Mitsui Banking Corporation, stated that in the short term, due to ongoing expectations for the High City government, there may continue to be downward pressure on the yen.

The bank explained that this is because the government is perceived to be more inclined towards expansionary fiscal policy than its predecessor, and its monetary policy has been observed to lean towards easing.

However, from a medium to long-term perspective, the new government faces budget deliberations before the end of the year, and policy implementation will be crucial. For the foreign exchange market, U.S. factors cannot be ignored. It is expected that the Federal Reserve will cut interest rates in October, and the tendency for further rate cuts may continue until December. Additionally, the ongoing turmoil from the government shutdown keeps downward pressure on the dollar quite strong.

Against this backdrop, the bank expects that the forces driving the dollar weaker in the medium to long term will outweigh those driving the yen weaker, leading to a gradual decline in the dollar/yen exchange rate