The US Dollar’s attempts to breach the elusive 100 Yen per Dollar level might have fallen just short of the mark up until now, but according to one of the largest banks in France the US Dollar will soon be victorious.
The Japanese Yen exchange rate was in the region of 98.9500 Yen to one US Dollar as of 12:02 GMT
Credit Agricole SA released a report yesterday stating that with Treasuring yields rising, demand for US debt will begin increasing and US Dollar will push through the 100 boundary.
Although the Yen weakened to 99.95 during April, when the Bank of Japan initiated unprecedented stimulus methods, since then Japanese demand for US securities has been low with investors steadily selling off foreign bonds for over a month, bolstering the Yen in the process.
But according to Credit Agricole, a ‘break of 100 [will] occur very soon’.
The report stated: ‘There’s every sense that this repatriation that we’ve seen in recent weeks is going to give way to a pretty significant outflow [of Japanese funds] The trend in the last four years has been for declining hedge rations. It would be very surprising, at a time when the Yen is coming under more pressure, to see an increase in the hedge ratio.’
The bank’s report also asserted that by the end of the year the Yen will have weakened to 104 against the US Dollar.
Movement in the USD/JPY pairing may be limited today due to a lack of significant economic news, but analysts expect it to trade in the region of 99.00.
Tomorrow’s Japanese Leading Index for March, which is expected to come in at 97.7 from March’s 97.6, could inspire Yen movement. US initial jobless claims data will also be of interest.
Current Japanese Yen (JPY) Exchange Rates
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.9500 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 153.3840 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 129.9180 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 82.9909 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.8300 <
(Correct as of 12:02 GMT)
Comments are closed.