Smbc Nikko: Japan may be close to historic yen collapse
The Finance Minister stated that the government will take appropriate measures on the currency market if necessary.
by Radiocor
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Japan could be on the verge of a historic yen collapse, due to the risk of a prolonged surge in oil prices and the government's fiscal easing, according to Makoto Noji, strategist at Smbc Nikko Securities.
If cost-driven inflation has weighed heavily on the Japanese public over the past three years, stimulating demand right now would only accelerate inflation, Noji argues.
"I hope to see a growing sentiment that further yen-buying intervention is necessary, along with self-help efforts - in particular interest rate hikes and a freeze on fiscal expansion - to prevent inflation and the weakening of the yen," he says.
Finance Minister Satsuki Katayama stated on 2 June 2026 that the government would take appropriate measures in the currency market if necessary.
Japan and Australia are the countries most likely to raise rates in the next six months
Japan and Australia are expected to be among the markets most likely to see further rate hikes in the next six months, as core inflation in both countries has been tighter than expected, says Nuveen, the investment manager at TIAA.
