Yield Outlook Fails to Lift Yen, Societe Generale Says
Societe Generale strategists observe the Japanese yen remains the worst-performing G10 currency, even as domestic yields rise and the Bank of Japan maintains its policy path.
USDJPY
SocGen strategists highlight that the Japanese yen has failed to gain ground even as domestic yields move higher and the Bank of Japan proceeds with policy adjustments. This divergence leaves the yen as the weakest performer among G10 currencies.
The persistent underperformance suggests that other factors—such as carry trade dynamics or global risk appetite—are outweighing the support from higher local yields. As a result, the yen’s recovery remains elusive despite the more favorable rate environment.
Source: FXStreet Forex News