Illustrative photo of US dollar (PxHere)
A exchange rate has fluctuated between 151 to 152 yen per American dollar. On Tuesday (2) the 151.35 yen. If the Federal Reserve of U.S does not cut interest rates this year, Bank of America (BofA) predicted that the yen could fall to 160 per dollar.
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Until the U.S begin monetary easing, intervention by the Japanese authorities to buy the yen will have little effect, the G10 global head of currency strategy said at the BofA.
The Japanese currency has already reached its lowest value in 30 years, close to 152 yen per dollar. Many, including him, see this as a level that would trigger intervention.
According to the boss, if the Federal Reserve of U.S reduce interest rates as expected by the market, the Japanese currency will rise to 142 yen.
Other strategists also believe that the intervention will only provide temporary support to the yen. It has already weakened beyond the levels that prompted intervention in 2022, and authorities are increasingly warning against speculative moves.
A Japanese analyst, according to the publication in Toyo Keizai, said that “we believe that the yen will continue to depreciate and we hope it reaches 155/dollar coming soon. If you reach 160 yen until the end of this year will depend on future developments, but it is better to be prepared for the trend of a stronger dollar and from one weaker yen. If there is any turbulence, there may be a period when the dollar weaken and the yen strengthen, but in the medium and long term the tendency is for the American currency to become strong and the Japanese currency weak”.
Fontes: Bloomberg e Toyo Keizai
