Westpac predicts that the yen exchange rate will rise to 137 yen per dollar by the end of the year.
September 16, 2024 17:23 JST
According to Richard Flanurovich, Westpac's currency strategy officer, there is a high possibility that the yen exchange rate will rise to 137-138 yen per dollar in the next 1-3 months. This is due to the dovish stance of the US financial authorities and the hawkish stance of the Bank of Japan.
Mr. Tong pointed out that the Federal Reserve can be considered dovish enough and there is a possibility of implementing a maximum 100 basis point (bp, 1 bp = 0.01%) interest rate cut by the end of the year. On the other hand, the Bank of Japan is expected to conduct additional interest rate hikes and December is mentioned as a likely timing for that.
Furthermore, he expressed the view that while this is indeed already priced in, it can still have an impact once it becomes a reality.
According to Richard Flanurovich, Westpac's currency strategy officer, there is a high possibility that the yen exchange rate will rise to 137-138 yen per dollar in the next 1-3 months. This is due to the dovish stance of the US financial authorities and the hawkish stance of the Bank of Japan.
Mr. Tong pointed out that the Federal Reserve can be considered dovish enough and there is a possibility of implementing a maximum 100 basis point (bp, 1 bp = 0.01%) interest rate cut by the end of the year. On the other hand, the Bank of Japan is expected to conduct additional interest rate hikes and December is mentioned as a likely timing for that.
Furthermore, he expressed the view that while this is indeed already priced in, it can still have an impact once it becomes a reality.
Opinion polls indicating Vice President Harris' favorability in the U.S. presidential election are also contributing to the weakening of the dollar.
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