Barclays Bank economists have said in a research report that Trump’s presidency may put pressure on the Japanese government and central bank through exchange rates. The economists believe that if the exchange rate between the US dollar and the yen gets closer to the 160 level and stays there for a while, it could damage public sentiment due to concerns about cost-push inflation and the impact on government support rates.
They also said that the risk of foreign exchange intervention or a rate hike by the Bank of Japan in December will continue to be a concern, depending on future exchange rate trends.
