1401 GMT - The Japanese yen should recover as Prime Minister Sanae Takaichi has promised to pursue responsible fiscal policy and the Bank of Japan could raise interest rates further, Rabobank's Jane Foley says in a note. In January Takaichi said the government wants to lower its high debt to gross domestic product ratio. Takaichi's victory in recent snap elections should allow her to step back from campaign debates that were sparked by the main opposition's even looser fiscal policy stance, Foley says. "Another reassuring factor is Japan's huge pile of domestic savings." With the BOJ also likely to raise rates further this year, the dollar could fall to 145 yen in 12 months from 153.23 currently, she says.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

February 12, 2026 09:01 ET (14:01 GMT)

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