Chidu Narayanan, chief Asia Pacific strategist at Wells Fargo Bank in Singapore, pointed out in a report that the Bank of Japan may raise interest rates at the September meeting, and if it decides to keep interest rates unchanged, the USD/JPY exchange rate may rise above 160. If the Bank of Japan adopts a hawkish interest rate hike and consumption tax is lowered, and the dollar weakens, the exchange rate of the dollar against the yen may fall to 157 by the end of the year and 156 in the first quarter of next year. If the government strictly abides by the principle of fiscal prudence and limits subsidy spending, it may push the yen to strengthen further, causing the bank's forecast to face a downside risk, falling to 155.

Chidu Narayanan, chief Asia Pacific strategist at Wells Fargo Bank in Singapore, pointed out in a report that the Bank of Japan may raise interest rates at the September meeting, and if it decides to keep interest rates unchanged, the USD/JPY exchange rate may rise above 160. If the Bank of Japan adopts a hawkish interest rate hike and consumption tax is lowered, and the dollar weakens, the exchange rate of the dollar against the yen may fall to 157 by the end of the year and 156 in the first quarter of next year. If the government strictly abides by the principle of fiscal prudence and limits subsidy spending, it may push the yen to strengthen further, causing the bank's forecast to face a downside risk, falling to 155.