Strategists at Deutsche Bank AG have indicated that the yen's decline toward the 165 level against the US dollar has not triggered significant concern among Japanese investors or policymakers. The bank's strategists have now abandoned their recommendation to hold a long position on the yen against the euro.
"The current weakness of the yen does not appear to be causing much worry in Japan," said Deutsche Bank AG macro strategist Tim Baker in a report released on Friday.
"Client feedback, recent news reports, and market movements collectively suggest that Japanese policymakers are in a reactive mode, and may even be falling behind the curve."
The shift reflects a reassessment of the currency landscape, with the yen's persistent depreciation failing to provoke the expected defensive stance from Tokyo.
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