Credit Agricole: By the end of 2026, the US dollar is expected to rise to 160 Japanese yen.

Parisha Saimbi, emerging market Asia foreign exchange and rate strategist at Banque Paris, said that the global macro environment next year should be "relatively favorable for risk sentiment, which typically benefits arbitrage strategies." She expects the USD/JPY to rise to 160 by the end of 2026. She added that strong arbitrage demand, cautious policies from the Bank of Japan, and the possibility of the Federal Reserve adopting a more hawkish stance than expected could keep the exchange rate at high levels.