While projections for a 2023 yen rebound started going wrong as early as February, forecasters see key differences this time around. A year ago traders were speculating that a new chief at the BOJ might unwind ultra-easy monetary policy. Now they’re aligned with economists who say a shift will come within months, and the central bank’s own leadership has publicly discussed the implications of a future exit.
Three straight years of outsized declines in the yen look set to end in 2024.
That’s the view of market participants polled by Bloomberg, who on balance see the currency rallying next year as the Bank of Japan exits the world’s last negative interest rate regime and its global peers cut borrowing costs.
