BofA Warns of Weaker, More-Volatile Yen on Japan Political Risks

Japan’s yen, the worst-performing Group-of-10 currency this year against both the dollar and the euro, may lose value and become more volatile due to a series of domestic catalysts.

Fall elections, a new national endowment to fund university research initially worth 4.5 trillion yen ($41 billion) and any increase in outward mergers and acquisitions will likely put pressure on the yen through the rest of the year, according to Bank of America Japan’s Shusuke Yamada.