The yen may return to its record highs against the dollar due to the fact that Japanese investors may refrain from investing in foreign assets despite the risk reduction occurred in the country after the earthquake. This opinion was expressed specialists JPMorgan Chase & Co. Junia Tenes, chief currency strategist, suggests that Japanese investors and corporations can repatriate about 10 trillion. yen in the current year. "Given the opportunity, the yen could resume growth as the traditional scheme of flow of money abroad will be disrupted due to the reduction in risk appetite on the part of domestic private investors and companies," - said Tenes. The expert adds that the yen will receive an additional stimulus to growth due to low demand for the dollar because the U.S., being the world's largest debtor in the low rate of return. "Interest rates should be significantly higher than in Japan. It is not normal that these two countries have almost identical close to zero interest rates" - gives his opinion Junia Tenes. The expert believes that the intervention of the Bank of Japan in connection with the strengthening of the yen seems unlikely, since the volatility compared to the period after the earthquake
Wednesday, May 11, 2011
Yen may return to its record highs against the dollar
The yen may return to its record highs against the dollar due to the fact that Japanese investors may refrain from investing in foreign assets despite the risk reduction occurred in the country after the earthquake. This opinion was expressed specialists JPMorgan Chase & Co. Junia Tenes, chief currency strategist, suggests that Japanese investors and corporations can repatriate about 10 trillion. yen in the current year. "Given the opportunity, the yen could resume growth as the traditional scheme of flow of money abroad will be disrupted due to the reduction in risk appetite on the part of domestic private investors and companies," - said Tenes. The expert adds that the yen will receive an additional stimulus to growth due to low demand for the dollar because the U.S., being the world's largest debtor in the low rate of return. "Interest rates should be significantly higher than in Japan. It is not normal that these two countries have almost identical close to zero interest rates" - gives his opinion Junia Tenes. The expert believes that the intervention of the Bank of Japan in connection with the strengthening of the yen seems unlikely, since the volatility compared to the period after the earthquake
