Strategist: The yen may fall due to political uncertainty.

On August 6, Jin10 reported that strategists at Pictet Asset Management stated in a report that the Japanese yen is at risk of depreciation against the US dollar. They noted that political and economic uncertainties may put pressure on the yen. Last month’s Senate elections in Japan increased the risk of a hung parliament. Concerns over potential increases in public borrowing are also putting pressure on government bonds. This may prompt the Central Bank of Japan to withdraw its quantitative easing policy, which would be unfavorable for the yen. They indicated that the dollar’s weakness so far this year has also been somewhat excessive, suggesting that it should experience a period of consolidation.