Yen Under Pressure to Extend World-Beating Rally Against Dollar
- Credit Suisse sees potential for yen to reach 90 per dollar
- JPMorgan sees friction with U.S. leading to further rallies
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The yen’s world-beating rally against the dollar looks to be gathering momentum, as central bank inaction on both sides of the Pacific Ocean leaves inflation expectations to drive the exchange rate.
Japan’s currency extended its climb to an 18-month high Monday after Bank of Japan Governor Haruhiko Kuroda refrained from adding to stimulus on Thursday. That took its gain this year to 13 percent, the most among developed-market peers. The BOJ’s decision came just hours after Federal Reserve Chair Janet Yellen frustrated dollar bulls by reiterating she’s in no rush to cool the economy by raising interest rates. JPMorgan Chase & Co. sees further yen gains after the U.S. put Japan on a new currency watch list.