There’s a risk that the yen will gain toward 110 per dollar in the near term unless U.S. wages increase and boost 10-year U.S. Treasury yields, said Daiju Aoki, chief Japan economist at UBS Securities Japan Co. in Tokyo. In a tightening cycle, a rise in short-term yields on rate hike expectations alone tends to weigh on stocks, damp risk sentiment and cap the dollar, said Aoki, who pointed out that the yen strengthened to about 102 in 2004 even as the two-year U.S. yield climbed. He forecasts the yen will end the year at 113.
Source: Bloomberg Pro Terminal
Trader Bozhidar Arabadzhiev
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