According to the interest parity condition, if the dollar exchange rate in yen is expected to rise, then the U.S. interest rate should be below the Japanese interest rate.

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According to the interest parity condition, if the dollar is expected to appreciate against the yen (meaning the exchange rate in yen per dollar is expected to rise), it implies that investors will demand a higher interest rate for holding yen-denominated assets compared to dollar-denominated assets. Therefore, for the condition to hold, the U.S. interest rate must be lower than the Japanese interest rate to offset the expected currency appreciation.

According to the Interest Parity Condition, If the Dollar Exchange