Yen May Rebound to 100 on Trump Risks, Macro Currency Says
- Currency presently weaker than its ‘logical level’: Farrington
- Fund manager would be ‘strong seller’ of dollar-yen now
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The yen’s swoon after Donald Trump’s shock election win has turned the developed world’s strongest currency into its weakest performer. Macro Currency Group says it has also opened up an enticing buying opportunity.
Mark Farrington, who oversees $2.2 billion as managing director at the London-based fund manager, says Japan’s currency is poised to rally because Trump’s policies will spur political risk, reviving demand for the yen as a haven. The recent rout in Treasuries may also drive Japanese investors back to local bonds. A more “logical level” is around 100 yen per dollar, about 9 percent stronger than where it is now. That view compares with the median forecast in a Bloomberg poll for the currency to strengthen to 105 by mid-2017.