Story perspectives

UBS Predicts Dollar-Yen Hits 175 Amid Yen Weakness

4/2/2026

Summary

Story summary

UBS Group AG forecasts the dollar-yen could reach 175 by year-end, citing a weaker yen and rising oil prices.
Despite Japanese officials’ stronger intervention rhetoric, strategists expect the yen’s decline to continue.
They warn that inflation-controlled foreign-exchange (FX) intervention may deepen selling pressure and deplete reserves.
Fiscal measures like energy subsidies may be necessary, as depreciation driven by global stagflation and rising energy costs increases living costs and political instability.

History

Historical Context

The Plaza Accord, signed on September 22, 1985, by the U.S., Japan, and other nations, aimed to depreciate the U.S. dollar to address trade imbalances. While the dollar fell significantly, the Accord failed to reduce the U.S.-Japan trade deficit, contributing to Japan's economic bubble in the late 1980s. Today, UBS forecasts a weaker yen, echoing similar economic pressures from that era.

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Story summary

UBS Group AG forecasts the dollar-yen could reach 175 by year-end, citing a weaker yen and rising oil prices.
Despite Japanese officials’ stronger intervention rhetoric, strategists expect the yen’s decline to continue.
They warn that inflation-controlled foreign-exchange (FX) intervention may deepen selling pressure and deplete reserves.
Fiscal measures like energy subsidies may be necessary, as depreciation driven by global stagflation and rising energy costs increases living costs and political instability.

1 / 2