Top yen forecaster predicts ¥147 per dollar as rate gap narrows

Yen forecaster Neil Parker expects the currency to strengthen to ¥147 per dollar next year as the interest-rate gap between Japan and the U.S. narrows, bucking bearish market expectations. | BLOOMBERG

Nov 10, 2026

Neil Parker has spent nearly three decades tracking the yen, through financial crises and sharp currency swings. Now, the top dollar-yen forecaster in Bloomberg’s latest rankings sees the Japanese currency rallying toward ¥147 per dollar next year as Japan’s interest-rate gap with the U.S. narrows.

His call puts him at the bullish end of a deeply divided market. While Parker sees the yen strengthening to around ¥155 by year-end before appreciating further, Bloomberg’s top forecaster in the previous quarter sees it weakening as far as ¥170 next year.

At the heart of the divergence is Japan’s interest-rate outlook. Parker expects the Bank of Japan to raise its benchmark rate from 1.25% to at least 2%, potentially 2.25%, a more aggressive outlook for tightening than much of the market expects. The Federal Reserve, meanwhile, may raise interest rates once more in December before stopping at around the 4.00-4.25% range, according to Parker.

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