Market analysts and fund managers expect further declines towards three-decade lows before the year end
Japan’s threats of currency intervention might slow but not stop the yen from hurtling towards three-decade lows before the year end, market analysts and fund managers say.
They say the yen could soon hit a 32-year low of 150 per dollar or beyond as the Bank of Japan stays isolated in its uber-dovish policy stance while its global peers hike rates aggressively to battle inflation. Such a dynamic is destined to keep the yen falling, and the fact that it is “super-undervalued” already on many metrics means nothing until the BOJ shifts policy, said Tohru Sasaki, head of Japan markets research at J.P. Morgan Securities in Tokyo.
The BOJ is the last remaining dove among the Group of 10 central banks. New Zealand’s Reserve Bank was one of the first out of the gate nearly a year ago and even holdouts like the Swiss National Bank have tightened policy. Barclays, though, sees the yen gradually recovering toward 130 next year as U.S. inflation peaks and the Fed slows the pace of tightening. But it all depends on the Fed, with the BOJ’s policy stasis rendering it just a passenger.Japan’s biggest bank, Nomura, agrees that the Fed is the focus for dollar-yen traders.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Just How Much Is Riding on the Fall Real Estate Market?The realestatemarket impacts many sectors of the Canadian economy, which could result in significant negative impact if the housing correction continues through the fall. joshxsherman | realestate realestatenews cdnpoli
Read more »
B.C. housing market stabilizing, though prices still rising: BCREAThrough the first eight months of the year, residential unit sales were down 30.5 per cent, while the average sale price was up 12 per cent to $1.02 million
Read more »
Inflation triggered worst market sell-off since 2020, analyst predicts even more pain - John Feneck
Read more »
Global lithium market to face growing shortage from 2023 - reportA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Read more »
Stock market tumble draws bargain huntersWall Street ‘feat gauge’ jumped to a two-month high as traders lapped up defensive options
Read more »
How to navigate a 'unreal' rental market, and find an affordable place to liveDemand has led to rent soaring by over $1,000 in some periods, over a period of months. Here are some ways to stand out from the pack when
Read more »