Commerzbank: Japan's upcoming election could lead to a depreciation of the yen

Business Report: German Commercial Bank analyst Volkmar Baur stated in a report that the upcoming Japanese election could be a turning point for the country and potentially have an adverse impact on the Japanese yen. Opinion polls show that the government faces the risk of losing its majority in the Sunday parliamentary election. He also noted that the possibility of a new election in the House of Representatives cannot be ruled out. This increases the uncertainty of future fiscal policy and makes trade negotiations with the United States more difficult, "which will certainly weaken the yen". Baur added that even without any changes, if the government introduces a new fiscal plan in response to the election results but fails to address structural problems, the yen could still decline. (Jin Shi)