Fitch: The Japanese yen is expected to appreciate moderately against the US dollar this year.

Fitch Ratings stated in a research report that the Japanese yen may appreciate moderately this year, but will still be at historically weak levels. The analysts from the agency pointed out that despite the yen strengthening in the first four months of 2025, as the Japanese authorities keep interest rates basically unchanged, its exchange rate will continue to depreciate by the end of the year. They believe that with the normalization of Japan's monetary policy, and central banks in other major economies either cutting interest rates or keeping them unchanged, the yen has potential for appreciation. Fitch Ratings expects the yen to appreciate by about 6% against the US dollar this year, making it the currency with the largest potential for appreciation against the dollar among the 20 major economies closely monitored by the agency.