Market consensus: Currency flop and Yen’s three-year decline expected to reverse in 2024

In 2024, the yen's three-year downward trend is anticipated to reverse, according to a Bloomberg poll. Analysts foresee a strengthening yen as the Bank of Japan exits negative interest rates, diverging from global peers cutting borrowing costs. Unlike previous projections, optimism is grounded in a shift within months, aligning with the central bank's discussions on a future exit. With a clearer global economic picture, the median forecast suggests the yen will reach 135 against the dollar by year-end, signaling a potential end to its prolonged slump.

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Big Currency Flop of 2023 Is Top Pick for Year Ahead, Again

By Yumi Teso and Daisuke Sakai

Three straight years of outsized declines in the yen look set to end in 2024.

That's the view of market participants polled by Bloomberg, who on balance see the currency rallying next year as the Bank of Japan exits the world's last negative interest rate regime and its global peers cut borrowing costs.

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