Currency Pressure And The ¥ 160 ‘Red Line’
Since the publication of this short article, the USD/JPY currency exchange rate stood at ¥ 156.85 for $1.
” A favorable election outcome for the LDP that would pump more air into the ‘Takaichi trade’ is a USD/JPY favorable,” ING experts kept in mind, including that authorities in Tokyo are most likely to do fight at the ¥ 160 level to suppress the increasing expense of living.
Redefining The Carry Trade, Global Yields
As the Bank of Japan approaches financial normalization, the “unfavorable bring play” is being redefined. ING anticipates JGB yields to strike 3.0% by the end of 2027, driven by sustainable inflation and wage development.
This domestic “go back to typical” threatens to activate a repatriation of Japanese capital, possibly pressing U.S. Treasury yields greater as the world’s biggest lender country brings its liquidity back home.
While the 10-year and 30-year U.S. Treasury yielded 4.19% and 4.85%, the 10-year and 30-year JGB yielded 2.23% and 3.55%, respectively, since the publication of this short article.
Trump Recommendation And Election Required
Braking with diplomatic custom, Trump applauded Takaichi on social networks as a “strong, effective, and smart Leader,” verifying a prominent top in Washington arranged for March 19.
” I wish to understand a brand-new golden era of the Japan-U.S. alliance, where both Japan and the United States will end up being more powerful and likewise more flourishing,” stated Takaichi, dealing with the media and President Trump at the start of their bilateral conference on Oct. 28, 2025, at the Akasaka Palace.
Disclaimer: This material was partly produced with the aid of AI tools and was examined and released by Benzinga editors.
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