JPMorgan Sees Yen Climbing as U.S. Scrutiny Impedes Intervention
- Surge past 100 yen per dollar can't be ruled out: JPMorgan
- U.S. report won't limit action, Finance Minister Aso says
Yen Feels Unintended Consequences of Negative Rates
Japanese officials concerned at the yen’s surge to an 18-month high now face the headache of being on a U.S. watch list for currency practices. JPMorgan Chase & Co. says the potential for U.S. opposition to exchange-rate intervention will probably help strengthen the yen more.
The dollar-yen market is orderly and it’s important for countries to keep their Group-of-Seven and Group-of-20 currency commitments, the U.S. Treasury said Friday. The yen’s 13 percent surge this year has prompted Japan’s Finance Minister Taro Aso to say that authorities would act if moves were one-sided. Recent yen gains are “extremely concerning” and the U.S. report won’t limit how Japan can respond, he said Saturday, according to a transcript obtained by Bloomberg. Germany, China, South Korea and Taiwan were also included as countries to be monitored.