Thursday, May 9, 2013

USD/JPY hits 100 - just as Dr. Abe ordered

A number of readers had negative reactions to the recent post on USD/JPY heading for 100 (see discussion). But when a nation's government and the central bank are both trying to weaken the currency, such outcome is only a matter of time.


Japan's Upper House elections are coming up in July. Abe clearly wants to see the yen weaker by then, ideally with dollar-yen firmly above the psychological level of 100. Some (like the ISI Group) are now calling for 110 as the next stop - though given the slow growth in the US, it may take a while.



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