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Commerzbank: Japans upcoming election could lead to a depreciation of the yen
Odaily News Volkmar Baur, an analyst at Commerzbank, said in a report that Japans upcoming elections could be a turning point for the country and a headwind for the yen. Polls show the government is in danger of losing its majority in Sundays Senate election. He also said new elections in the House of Representatives could not be ruled out. This increases uncertainty about future fiscal policy and makes trade negotiations with the United States more difficult, which will certainly weaken the yen. Even if nothing changes, the yen could fall if the government launches a new fiscal package in response to the election results but fails to address structural issues, Baur said. (Jinshi)
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