Japanese Yen: Heading back toward 160 against US Dollar – Commerzbank
Volkmar Baur at Commerzbank notes that the Japanese Yen has weakened again above 159 per Dollar despite recent intervention and Bank of Japan signals.
The Japanese Yen has once again moved above 159 per U.S. Dollar, signaling a continued weakening trend. Commerzbank's Volkmar Baur attributes this to the yen being fundamentally too weak, backed by strong current account data and increasing credit growth. However, foreign investment in Japanese stocks, which are largely held in currency-hedged positions, is also contributing to the yen's pressure.
While the Bank of Japan may need to provide clearer signals of its intentions to raise interest rates more rapidly, market sentiment appears to find this insufficient.
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