Fitch Ratings said in its December Global Economic Outlook that there is some room for appreciation of the yen as the Bank of Japan is expected to normalize its monetary policy stance. The agency said that 160 yen is still an important threshold for the dollar against the yen, and pointed out that the recent weakness of the yen has prompted Japan's Ministry of Finance to step up its verbal warning. According to Fitch, the Bank of Japan may raise interest rates again before the end of 2025, but this move may be delayed until January. “Given the re-inflationary environment and the weakening yen, we think the policy interest rate will reach 1.5% by the end of 2026. However, Prime Minister Takaichi Sanae's preference for easing policies biases the risk towards reducing the number of interest rate hikes,” the agency said. According to data from the London Stock Exchange Group, the dollar was reported at 155.34 yen against the yen.

Fitch Ratings said in its December Global Economic Outlook that there is some room for appreciation of the yen as the Bank of Japan is expected to normalize its monetary policy stance. The agency said that 160 yen is still an important threshold for the dollar against the yen, and pointed out that the recent weakness of the yen has prompted Japan's Ministry of Finance to step up its verbal warning. According to Fitch, the Bank of Japan may raise interest rates again before the end of 2025, but this move may be delayed until January. “Given the re-inflationary environment and the weakening yen, we think the policy interest rate will reach 1.5% by the end of 2026. However, Prime Minister Takaichi Sanae's preference for easing policies biases the risk towards reducing the number of interest rate hikes,” the agency said. According to data from the London Stock Exchange Group, the dollar was reported at 155.34 yen against the yen.