Analysts argued that the yen will struggle to escape depreciation despite the prospect of further Bank of Japan rate rises, maintaining the view that a move toward 170 per dollar remains possible.

The reasoning rests not on the rate gap itself but on the speed at which it narrows. If Japan raises only modestly while the timing of US cuts slips further out, the differential does not shrink as much as markets expect.

The second factor is capital flow. With Japanese households and institutions holding more overseas assets, a small rise in domestic rates does not bring money home immediately, applying persistent downward pressure on the currency.

A weak yen benefits Japanese exporters but pushes import prices up. In an economy dependent on imported energy and food, household burdens grow, which returns as pressure on monetary policy.

For Korea, yen weakness is a matter of competitive conditions. Many product lines in automobiles, machinery and materials overlap with Japanese firms, so a widening currency gap directly affects export price competitiveness.