The Japanese yen faces pressure as the new prime minister stated Japan is unprepared for interest rate hikes, reaffirming a dovish monetary policy.
Bank of Japan policymaker Asahi Noguchi emphasized patience in normalizing policy, reinforcing a bearish outlook on the yen amid global interest rate disparities.
As Japan's accommodative monetary policy contrasts with higher rates elsewhere, the yen's value decreases, affecting bond yields and investment attractiveness.
The gap between low Japanese rates and higher global rates leads to a stagnation of Japanese bond yields, further dissuading investment in the yen.
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