German bank: Japan's upcoming election may lead to a depreciation of the yen.

Analyst Volkmar Baur of Germany's Commerzbank said in a report that the upcoming election in Japan could be a turning point for the country and have a negative impact on the yen. Opinion polls show that the government is at risk of losing its majority in Sunday's upper house election. He also stated that the possibility of a new election in the lower house cannot be ruled out. This increases uncertainty in future fiscal policies 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 problems, the yen could still depreciate.