Friday, July 19, 2024
HomeBusinessInvesting: Dollar-yen could fall to 135 in 'near future': Wells Fargo

Investing: Dollar-yen could fall to 135 in ‘near future’: Wells Fargo


Related stories

Adam Lindemann’s Venus Over Manhattan Wraps Up Latest Show-Stopping Exhibits

Founded by Adam Lindemann in 2012, Venus Over Manhattan...

100+ Smooth Pick-Up Rizz Lines For You To Rizz Up A Girl

Have you ever tried approaching someone? but failed...

Utanmaz Türkler: Exploring Cultural Nuances and Societal Impacts

Introduction "Utanmaz Türkler" translates to "Shameless Turks" in English. This...

Why Trusts Are Key to Wealth Preservation

When it comes to preserving wealth across generations, few...


This photo illustration shows Japanese 10,000 yen banknotes in Tokyo on November 19, 2021. The Japanese currency has weakened sharply against the dollar in recent weeks amid expectations the Bank of Japan will lag its peers in normalizing monetary policy.

Behrouz Mehri | AFP | Getty Images

The Japanese yen may continue to see weakness against the U.S. dollar if the policies of the Bank of Japan and Federal Reserve continue to diverge, said Wells Fargo Securities’ Brendan McKenna.

“We certainly see a move up through 130, we think that’s definitely possible,” McKenna told CNBC’s “Squawk Box Asia” on Wednesday.

“Assuming BOJ policymakers stay committed to their easy monetary policy … framework, we think a move up towards maybe 135 [yen per dollar] could be likely within the very near future,” the foreign exchange strategist said.

The yen fell nearly 6% against the greenback in March, and is continuing to see losses in April.

The Japanese currency has struggled for gains against the dollar amid expectations the Bank of Japan will lag its peers, such as the U.S. Federal Reserve, in normalizing monetary policy.

On Wednesday, the yen saw a partial recovery against the dollar after the Bank of Japan said it would offer to buy an unlimited amount of 10-year Japanese government bonds at 0.25%. It last traded around 128.20 per dollar, representing a more than 5% slide against the greenback so far this month.

Despite the recent weakness, Bank of Singapore’s Sim Moh Siong says the Japanese currency is “still quite some distance from the alarm bells really setting off.”

See also  Fed Keeps Rates, Bond Purchases Steady; Signals Hikes in 2023 By

Japanese authorities have so far resorted to verbal intervention rather than the historical method of selling dollars and buying yen, said Sim, a currency strategist at the firm.

Stock picks and investing trends from CNBC Pro:

For now, the Bank of Japan appears prepared to “stay dovish by buying unlimited amount of bonds,” he said.

“If you look at the historical episodes … the intervention level tends to cluster around the 127 to 132 levels,” he said. “I suspect we probably need a higher level in terms of dollar-yen to prompt intervention.”


Source link

Bellie Brown
Bellie Brown
Hi my lovely readers, I am Bellie brown editor and writer of I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting

Latest stories