Economics
Pound to Rally Most Against Yen If ‘Remain’ Wins U.K. Referendum
- Sterling to gain 10% versus yen, 3% against dollar: Macquarie
- ‘Remain’ win will give sterling ‘double boost’ versus yen: RBS
El-Erian on Currency Volatility and Fed Credibility
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The yen is set to be the big loser if Britons vote to stay in the European Union, triggering pound buying.
In the event of a “Remain” vote, the prospect of higher U.S. interest rates as soon as July may limit sterling’s advance against the greenback, with the Bank England unlikely to be in a rush to follow the Federal Reserve, according to Macquarie Bank Ltd. and Royal Bank of Scotland Group Plc. On the other hand, more than half of analysts surveyed by Bloomberg expect the Bank of Japan to add currency-sapping stimulus next month.