Jane Foley, a foreign exchange strategist at Rabobank, said that if the U.S. economy shows signs of weakening, making it possible for the Federal Reserve to cut interest rates in September and December, the yen may strengthen against the dollar. She pointed out that if the Bank of Japan raises interest rates again this year, it will ease some of the upward pressure on the dollar against the yen. There is speculation that the Bank of Japan may be inclined to raise interest rates or reduce bond purchases at a faster pace than previously expected. If the information from the Bank of Japan's June meeting indicates that policy will be tightened in the future, the dollar against the yen may fall from the current level of over 156 to 152 within a month, and may reach 145 in 12 months.
