Bank of America strategists Shusuke Yamada and Izumi Devalier, among others, said that if the Fed does not cut interest rates by the end of 2024, in this scenario, the yen could fall to 160 against the dollar due to interest rate differentials.
Bank of America believes that the Federal Reserve is expected to start cutting interest rates in May next year, but there is great uncertainty about the timing of slowing inflation and monetary easing in the United States.
USD/JPY could hit 147 by September this year as the BoJ’s slow response to inflation puts more pressure on the yen.