Yen Poised to Unwind Pandemic-Driven Gains on Policy Divergence
- Haven curreny has faltered amid optimism over global recovery
- Yen may slide to four-year low of 115 per dollar, Mizuho says
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The yen looks poised to unwind an advance spurred by demand for haven asset during the pandemic, with traders betting the Bank of Japan will fall behind the Federal Reserve in tightening policy as global the economy recovers.
The Japanese currency depreciated to 111.12 per dollar on Thursday, the weakest since March 2020. Traders are positioning for the Fed to raise rates twice by the middle of 2023 after the central bank took a hawkish tilt last week. The BOJ is expected to maintain its ultra accommodative stance.