Commerzbank: Japan's upcoming election could lead to a depreciation of the yen


 Volkmar Baur, an analyst at Deutsche Bank, said in a report that the upcoming elections in Japan could be a turning point for the country and have a negative impact on the yen. Opinion polls show that the government faces the risk of losing a majority of seats in the Sunday Upper House elections. He also stated that the possibility of holding new elections in the Lower House cannot be ruled out. This increases the uncertainty of future fiscal policy and makes trade negotiations with the United States more difficult, "which will definitely weaken the yen." Baur said that even without any changes, if the government introduces new fiscal measures in response to the election results but fails to address structural issues, the yen may also decline.